1. Use this information for Kellman Company to answer the question that follows.

   The balance sheets at the end of each of the first two years of operations indicate the following:

   Kellman Company
   	Year 2	Year 1
   Total current assets	$603,500	$565,600
   Total investments	61,900	42,500
   Total property, plant, and equipment	862,000	767,600
   Total current liabilities	110,700	85,100
   Total long-term liabilities	289,100	247,400
   Preferred 9% stock, $100 par	92,500	92,500
   Common stock, $10 par	590,200	590,200
   Paid-in capital in excess of parCommon stock	68,300	68,300
   Retained earnings	376,600	292,200

   Using the balance sheets for Kellman Company, if net income is $112,000 and interest expense is $30,000 for Year 2, what is the return on stockholders' equity for Year 2 (rounded to two decimal places)?

   a.10.82%

   b.11.78%

   c.10.32%

   d.11.28%