You have been given the information below on the Crum Company. Crum expects sales to grow by 50% in 2011, and operating costs should increase at the same rate. Fixed assets were being operated at 40% of capacity in 2010, but all other assets were used to full capacity. Underutilized fixed assets cannot be sold. Current assets and spontaneous liabilities should increase at the same rate as sales during 2011. The company plans to finance any external funds needed as 35% notes payable and 65% common stock. After taking financing feedbacks into account, and after the second pass, what is Crum's projected ROE using the projected balance sheet method? Information on the Crum Company:

	2010	2011 1st pass	2011 2nd pass
Sales	$1,000.00
Operating costs	800.00
EBIT	$ 200.00
Interest	16.00
EBT	$ 184.00
Taxes (40%)	73.60
Net Income	$ 110.40
Dividends (60%)	66.24
Add'n to R.E.	$ 44.16
Current Assets	$ 700.00
Net fixed Assets	300.00
Total assets	$1,000.00
A/P and Accruals	$ 150.00
N/P 8.00%	200.00
Common stock	150.00
Retained earnings	500.00
Total Liab & Equity	$1,000.00

AFN
Profit Margin	11.04%
ROE	16.98%
Debt/Assets	35.00%
Current ratio	2.00 times
Payout Ratio	60.00%

AFN Financing:	Weights:	Dollars:	Interest Expense:
N/P	0.3500
Common Stock	0.6500
Growth rate: 50.00%	1.0000