Question
Calculate the return on equity given: Net Income: $40,000 Shareholders' Equity: $160,000 Requirements : Calculate the ROE using the provided net income and shareholders' equity.
Calculate the return on equity given:
Net Income: $40,000
Shareholders' Equity: $160,000
Requirements: Calculate the ROE using the provided net income and shareholders' equity.
Answer: ROE = Net Income / Shareholders' Equity = $40,000 / $160,000 = 0.25 or 25%
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Survey of Accounting
Authors: Carl S. Warren
8th edition
1305961889, 978-1337517386, 1337517380, 978-1305961883
