what is the firm's ROE?

Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2014 Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities. $ 2,500 11,500 16.000 $30,000 $20.000 $50,000 $9,500 5,500 7.000 $22,000 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of S) Net sales Operating costs except depreciation Depreciation Earnings bef interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price $15,000 $37,000 $ 2,000 11.000 $13.000 $50,000 2014 $87,500 81,813 1.531 $ 4,156 1.375 $ 2,781 973 $ 1,808 500.00 $632.73 6.25% 35% $43.39 Refer to Exhibit 4.1. What is the firm's ROE? 13.21% 13.91% 14.60% 15.33% 16.10% O O