The following case should be referenced to answer question

The Delicious Restaurant Corporation reported the following financials at the end of the current year:


Inventory and prepaid expenses account for $30,000 of the current year’s current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20.

What is the rate of return on common stockholders’ equity (ROE) for the current year?

a. 37.49%

b. 2.43%

c. 41.69%

d.  66.79%

e. None of the above

Using the basic formula for the return on equity, averaging total equity over the period,


d.  66.79%