The company had assets of $7050 million in the frist year and $11278 million in the second year. Common equity was equal to $3750 million in the first year, 100% of earnings were paid out as dividends in the first, and the firm did not issue new stock in the second year.
Net sale $ 3810 million
operating cost except depreciation and amortization $1120 Million
operating income $2499 million
Interest $337 million
Earning before taxes $2162 million
taxes $865 million
Net income $1297 million
Calculate the Return on common equity in the second year? Round the percentage into tow decimal places