1. The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.

   Assets
   Cash and short-term investments	$40,479
   Accounts receivable (net)	34,703
   Inventory	30,690
   Property, plant, and equipment	208,216
   Total Assets	$314,088
   Liabilities and Stockholders' Equity
   Current liabilities	$58,770
   Long-term liabilities	89,085
   Common stock, $20 par	106,880
   Retained earnings	59,353
   Total Liabilities and stockholders' equity	$314,088
   Income Statement
   Sales	$83,602
   Cost of goods sold	37,621
   Gross margin	$45,981
   Operating expenses	23,238
   Net income	$22,743
   Number of shares of common stock	5,344
   Market price of common stock	$20
   Dividends per share	$1.00
   Cash provided by operations	$40,000

   What is the return on stockholders' equity?

   a.4.7%

   b.1.2%

   c.4.3%

   d.38.3%