Use the information in the table below to answer the following questions.

Windswept Woodworks, Inc.
Input Data
(millions of dollars)
		Year 2			Year 1
Accounts payable		472			414
Accounts receivable		1,316			860
Accumulated depreciation		6,782			6,662
Cash & equivalents		260			158
Common stock		1,220			1,150
Cost of goods sold		1,500			n.a.
Depreciation expense		?			n.a.
Common stock dividends paid		?			n.a.
Interest expense		140			n.a.
Inventory		1,050			1,056
Addition to retained earnings		602			n.a.
Long-term debt		848			766
Notes payable		230			380
Gross plant & equipment		10,260			10,000
Retained earnings		3,098			2,506
Sales		3,018			n.a.
Other current liabilities		116			96
Tax rate		34	%		n.a.
Market price per share year end	$	19.80		$	17.50
Number of shares outstanding		500	million		500	million

Net profit = $830.28

a. Calculate Windswept Woodworks return on equity for year 2. (Round your answer to 2 decimal places.)