Hernandez Corporation Expects to Have the Following Data During the Coming

Multiple Choice

Hernandez Corporation expects to have the following data during the coming year.What is Hernandez's expected ROE? $\begin{array}{l}\begin{array}{lrl}\text { Assets } & \$ 200,000 & \text { Interest rate }&8 \% \\\text { D/A } & 65 \% & \text { Tax rate } &40 \%\\\text { EBIT } & \$ 25,000 &\end{array}\\\end{array}$

A) 12.51%
B) 13.14%
C) 13.80%
D) 14.49%
E) 15.21%