Shown below are selected data from the financial statements of Supreme Co. Dollar amounts are in millions (except for the per share data).

Income statement data:

Net sales$1,430

Cost of goods sold$570

Operating expenses$490

Net income$490

Balance sheet data:

Average total equity$3,400

Average total assets$5,000

Supreme reported earnings per share for the year of $5 and paid cash dividends of $2 per share. At year-end, the Wall Street Journal listed Supreme's capital stock as trading at $98 per share.

Supreme's gross profit rate was:

• 39.86%.
• 34.27%.
• 25.87%.
• 60.14%.