Mars Corporation Has Provided the Following Data for Year 2

Multiple Choice

Mars Corporation has provided the following data for Year 2:
$\begin{array}{lr}\text {Sales }&\$1,330,000\\\text {Gross margin. }&\$500,000\\\text {Net operating income. }&\$79,692\\\text {Net income before taxes }&\$63,692\\\text {Net income. }&\$41,400\\\end{array}$
The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000.The company's return on equity for Year 2 is closest to:

A) 5.91%
B) 7.40%
C) 3.84%
D) 71.20%