Assume That the Following Financial Ratios Were Computed from the 2017

Multiple Choice

Assume that the following financial ratios were computed from the 2017 financial statements of Florida Industries:
$\begin{array}{|l|l|}\hline \text { Return on sales (profit margin) } & 0.29 \\\hline \text { Return on assets } & 0.17 \\\hline \text { Common equity leverage } & 0.87 \\\hline \text { Capital structure leverage } & 2.22 \\\hline \text { Asset turnover } & 1.69 \\\hline\end{array}$
If Florida holds its other ratios constant in 2018, but increases its capital structure leverage ratio to 3.20, what will be the 2018 return on equity?

A) 15%
B) 51%
C) 86%
D) 47%