What is the rate earned on stockholders equity

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The balance sheets at the end of each of the first two years of operations indicate the following:


2011

2010

Total current assets

$600,000

$560,000

Total investments

60,000

40,000

Total property, plant, and equipment

900,000

700,000

Total current liabilities

125,000

80,000

Total long-term liabilities

350,000

250,000

Preferred 9% stock, $100 par

100,000

100,000

Common stock, $10 par

600,000

600,000

Paid-in capital in excess of par--common stock

60,000

60,000

Retained earnings

325,000

210,000

If net income is $130,000 and interest expense is $40,000 for 2011, what is the rate earned on stockholders' equity for 2011 (rounded to one decimal place)?

Reference no: EM13987960

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