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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 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
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