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Thomas Company had income before interest and taxes of $126,000. Interest expense for the period was $17,600 and income taxes amounted to $29,100. The average

Thomas Company had income before interest and taxes of $126,000. Interest expense for the period was $17,600 and income taxes amounted to $29,100. The average stockholders' equity was $686,000. Thomas' return on equity (ROE) is closest to:

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15.80%.

18.37%.

14.13%.

11.56%.

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