Below Is Selected Information from Tricrop -Return on Common Equity for Year 1 Is:
A)19

Below is selected information from Tricrop. $\begin{array}{lll}&\underline{\text { Year } 1} &\underline{\text { Year } 2}\\\text { Net operating assets/common equity } & 1.37 & 1.53 \\\text { Net operating profit margin } & 19 \% & 21 \% \\\text { Income tax rate } & 47 \% & 28 \% \\\text { Revenues/average net operating } & 0.81 & 0.61 \\\text { assets } & & \\\text { EBIT/revenues } & 38 \% & 32 \%\end{array}$
-Return on common equity for Year 1 is:

A) 19.0%.
B) 19.60%.
C) 21.08%.
D) 26.03%.

Correct Answer:

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