Use the Following Information for Questions:
the Following Data Was

Use the following information for questions:
The following data was taken from the accounting records of Darias Corporation: $\begin{array}{lrr}&2011&2010\\\hline\text { Total assets } & \$ 950,000 & \$ 850,000 \\\text { Total liabilities } & 250,000 & 240,000 \\\text { Preferred shares } & 75,000 & 75,000 \\\text { Common shares } & 300,000 & 300,000 \\\text { Retained earnings } & 325,000 & 235,000\\\text { Additional data: } & \\\text { Net income } & 140,000 \\\text { Preferred dividend } & 15,000 \\\text { Interest expense } & 25,000 \\\text { Sales revenue } & 980,000 \\\text { Tax rate } & 32 \%\end{array}$
-The return on equity for 2011 is closest to:

A) 20.0%
B) 21.5%
C) 26.7%
D) 46.7%