The financial statements of Tennessee Tractor Company are given below Tennessee Tractor Company Income Statement (2007) Sales $8,000,000 Cost of goods sold 5,260,000 Gross Profit 2,740,000 Selling and administrative Expenses 1,500,000 Operating profit 1,240,000 Interest expense 140,000 Income before tax 1,100,000 Tax Expense 440,000 Net Income $660,000 Balance Sheet 2007 Cash $ 200,000 Accounts Receivable 1,200,000 Inventory 1,840,000 Total current assets 3,240,000 Fixed Assets 3,200,000 Total Assets $6,440,000 Accounts payable 800,000 Bank loan 600,000 Total current liabilities 1,400,000 Bonds payable 900,000 Total liabilities 2,300,000 Common stock (130,000 shares) 300,000 Retained earnings 3,840,000 Total liabilities and equity $6,440,000 Note: the common shares are trading in the stock market for $40 each. The firms net return on equity ratio for 2007 is ___. A. 0.24% B. 1.63% C. 4.00% D.15.94% E.16.9%