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The balance sheets at the end of each of the first two years of operations indicate the following: Year 1 Kellman Company Year 2 Total
The balance sheets at the end of each of the first two years of operations indicate the following: Year 1 Kellman Company Year 2 Total current assets $618,340 $557,483 Total investments 69,558 46,886 Total property, plant, and equipment 857,837 608,075 Total current liabilities 115,376 81,528 Total long-term liabilities 307,811 227,492 Preferred 9% stock, $100 par 90,074 90,074 Common stock, $10 par 584,420 584,420 Paid-in capital in excess of par-common stock 69,366 69,366 Retained earnings 378,688 159,564 Using the balance sheets for Kellman Company, if net income is $119,506 and interest expense is $34,120 for Year 2, what is the return on stockholders' equity for Year 2 (round percent to two decimal points)? Select the correct answer. O7.73% O 11.80% 9.86% O11.14%
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