The balance sheets at the end of each of the first two years of operations indicate the following:
|
2011
|
2010
|
|
Total current assets
|
$600,000
|
$560,000
|
|
Total investments
|
60,000
|
40,000
|
|
Total property, plant, and equipment
|
900,000
|
700,000
|
|
Total current liabilities
|
125,000
|
80,000
|
|
Total long-term liabilities
|
350,000
|
250,000
|
|
Preferred 9% stock, $100 par
|
100,000
|
100,000
|
|
Common stock, $10 par
|
600,000
|
600,000
|
|
Paid-in capital in excess of par--common stock
|
60,000
|
60,000
|
|
Retained earnings
|
325,000
|
210,000
|
If net income is $130,000 and interest expense is $40,000 for 2011, what is the rate earned on stockholders' equity for 2011 (rounded to one decimal place)?