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Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first two years
Use this information for Kellman Company to answer the question that follow. 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 $627,600 62,500 Total investments $593,500 53,800 783,200 942,400 80,500 Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par 112,200 291,200 244,800 95,700 Common stock, $10 par 95,700 566,300 61,100 506,000 Paid-in capital in excess of par-Common stock Retained earnings 566,300 61,100 382,100 Using the balance sheets for Kellman Company, if net income is $102,600 and interest expense is $34,800 for Year 2, what is the return on stockholders' equity for Year 2 (rounded to two decimal places)? a. 9.24% b. 8.59% O c. 8.79% Od. 8.94%
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