Question
Company A's comparative balance sheets for 2020 and 2019 are shown below. Company A pays no dividends and instead reinvests all earnings for future growth.
Company A's comparative balance sheets for 2020 and 2019 are shown below. Company A pays no dividends and instead reinvests all earnings for future growth.
Liabilities and Shareholder's Equity section of Comparative Balance Sheets | ||
($ in millions) | ||
| December 31 | |
| 2020 | 2019 |
Liabilities and Shareholders Equity: |
|
|
Current Liabilities | $ 300 | $ 250 |
Bonds payable | 500 | 500 |
Common stock, $1 par | 228 | 215 |
Paid-in capital | 411 | 407 |
Retained earnings | 328 | 224 |
Determine the return on shareholders' equity for 2020. Enter the percentage not as a percentage but as a 4 significant digit (0.XXXX). For example 16.23% would be written as 0.1623. Do not include the percentage sign.
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