Lisa Inc.'s Balance Sheet Appears Below

Multiple Choice

Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.



-Lisa Inc.'s return on common shareholders' equity for Year 2 was closest to which of the following?

A) 7.8%.
B) 10.6%.
C) 10.9%.
D) 12.4%.