Use the following information for

December 31 2008 December 31 2007

Cash$375,000 $250,000

Accounts receivable (net) $400,000 $300,000

Inventories $650,000$550,000

Plant assets (net) $2,000,000$1,625,000

Accounts payable $275,000$200,000

Taxes payable $50,000$25,000

Bonds payable $350,000$350,000

10% Preferred stock, $50 par $500,000 $500,000

Common stock, $10 par $600,000$450,000

Paid-in capital$400,000$325,000

Retained earnings$1,000,000 $875,000

Net credit sales$3,200,000

Cost of goods sold $2,100,000

Operating expenses$725,000

Net income $375,000

Additional information: Depreciation included in cost of goods sold and operating expenses is $305,000. On May 1, 2008, 15,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2008.

Please show work.

The rate of return on common stock equity for 2008 is

A) 375