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?
$\begin{array}{l}\begin{array}{lc}\text { Assets } & \$ 200,000 \text { Interest rate } &8\%\\\text { D/A } & 65 \% \text { Tax rate } &40\%\\\text { EBIT } & \$ 25,000\end{array}\\\end{array}$

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