Nicco Corporation had the following accounts at January $1,2024$:

Common shares, unlimited number of shares authorized,

$18,000$ shares issued

$$180,000$

Preferred shares, $$4$ cumulative, unlimited number of shares authorized,

$1,000$ shares issued

$50,000$

Retained earnings

$$223,000$

The company has profit of $$79,000$ in $2024$ and paid $$85,000$ in dividends.

Instructions:

a$)$ Calculate the return on equity at December $31,2024($round to one decimal place$).$

b$)$ In $2023$ the return on equity was $20\%.$ What does the ratio in $2024$ tell you about the corporation?