Again, suppose you own a business and want to evaluate its profitability from equity capital.

The beginning balance sheet $($created at the beginning of last year$)$ shows net worth to be $$382,101.$ The ending balance sheet $($at the end of last year$)$ shows a net worth of $$404,404.$

On the income statement, you see an interest expense of $$23,092,$ a net income of $$92,000,$ and an allowance of $$21,425$ for your labor and managerial expertise as the owner of the business.

What is your rate of return on equity $($ROE$)$ in the company, expressed as a decimal number?

HINT: adjust the net income to figure returns to equity, then compute the average equity. Your class slides will be of great use here.