Earth Enterprises began the year 2020 with total stockholders' equity of $2,400,000. Its net income for 2020 was $640,000, and $106,800 of dividends were declared. Earth Enterprises had no other changes to shareholders' equity during 2020. What was Earth's return on equity at the end of 2020? Hint: Pay attention to the timing here. Make sure you are using ENDING Shareholders' Equity in your analysis. 

Answer rating: 100% (QA)

SOLUTION To calculate Earth Enterprises return on equity ROE at the end of 2020 we need to use the ... View the full answer