At year-end 2525, Stockholder’s Equity is $3,300 and there are 110 common shares outstanding. For 2526,...

At year-end 2525, Stockholder’s Equity is $3,300 and there are 110 common shares outstanding. For 2526, sales should equal $13,200 , the net profit margin (= net income ÷ sales) is 7.20%, the payout ratio (=dividends ÷ net income) is 45%, and no shares are issued or repurchased. If the equity price-to-book ratio at year-end 2525 is 0.65, and it moves to 0.74 at year-end 2526, what is the shareholder’s annual rate of return for 2526?a. 51.8% b. 47.1% c. 42.8% d. 39.0% e. 57.0%

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