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The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total

The balance sheets at the end of each of the first two years of operations indicate the following:

Kellman Company
Year 2 Year 1
Total current assets $605,000 $593,200
Total investments 67,300 45,400
Total property, plant, and equipment 902,700 637,200
Total current liabilities 112,900 80,300
Total long-term liabilities 300,400 245,700
Preferred 9% stock, $100 par 84,800 84,800
Common stock, $10 par 516,200 516,200
Paid-in capital in excess of par-common stock 67,600 67,600
Retained earnings 493,100 281,200

Using the balance sheets for Kellman Company, if net income is $112,200 and interest expense is $36,000 for Year 2, what is the return on stockholders' equity for Year 2 (round percent to two decimal points)?

a. 10.63%

b. 12.97%

c. 10.42%

d. 11.56%

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