Coronation Computers Opened the Fiscal Year with a Balance Sheet

Multiple Choice

Coronation Computers opened the fiscal year with a balance sheet showing retained earnings at $355,000, and common shares at $1.2 million. It added another $500,000 from the sale of 200,000 preferred shares, which paid $.35 a share in dividends in the last quarter of the fiscal year. If the Company's net income for the year was a $412,100 and there were no dividends paid to common shareholders, what was its return on equity?

A) 19.8%
B) 22.0%
C) 23.6%
D) 28.5%
E) 29.6%