You have been given the attached information on the Crum Company. Crum expects sales to grow by 30 percent in the next year and operating costs should increase in proportion to sales. Fixed assets were being operated at 80% capacity. Current assets and spontaneous liabilities should increase in proportion to sales during the next year. The company plans to finance any external funds as needed as 40 percent long-term debt and 60 percent common stock. The interest rate to be used is 8 percent; base interest expense on the debt at the beginning of the year (case earns no interest income). The dividend payout ratio will remain constant, irrespective of how many shares of stock are outstanding. Complete the following pro forma financial statements using the forecasted financial statement method. What is Crum's projected ROE using the percentage of sales method?

Information about the Crum Company:

Most Recent Year Next Year's Forecast Next Year After AFN

Sales $1,000,000

Operating Costs $800

EBIT $200

Interest $15

EBT $185

Taxes (40%) $74

Net Income $111

Dividends (60%) $66.60

Add'n to R.E. $44.40

Current Assets $700

Net Fixed Assets $300

Total Assets $1,000

A/P and Accruals $150

N/P $100

Long-term Debt $200

Common Stock $150

Retained Earnings $400

Total Liab & Equity $1,000