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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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
