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

Kellman CompanyYear 2Year 1Total current assets$615,678$560,793Total investments69,78049,986Total property, plant, and equipment865,740654,162Total current liabilities114,25387,934Total long-term liabilities290,511234,255Preferred 9% stock, $100 par91,00591,005Common stock, $10 par599,171599,171Paid-in capital in excess of par-common stock61,38861,388Retained earnings394,870191,188

Using the balance sheets for Kellman Company, if net income is $111,446 and interest expense is $48,646 for Year 2, what is the return on stockholders' equity for Year 2 (round percent to two decimal points)?

a.11.69%

b.7.18%

c.8.81%

d.11.37%