X Company and Y Company had the following balance sheet as of December 31of last year in millions of dollars.
Company	X	Y
Current assets	100	80
Fixed assets (net)	100	120
Current liabilities	20	80
long term debt	80	20
Common stock	50	50
Retained earnings	50	50
Earnings before interest and tax	30	30
Effective federal income tax	40%	40%
Assume:
interest rate on current liabilities	10%	10%
interest rate on long term debt	13%	13%
Find ROE for X?

1.	8.31%
2.	9.36%
3.	10.56%
4.	12%