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Porter Industries Inc. began 2018 with total stockholders equity of $40 million. Due to a large acquisition of treasury stock and the payment of a
Porter Industries Inc. began 2018 with total stockholders equity of $40 million. Due to a large acquisition of treasury stock and the payment of a $10 million cash dividend, the company ended that year with stockholders equity of only $5 million. For the year ended December 31, 2018, Porter reported net income of $10 million. What is the company's return on equity?
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10%
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2.25%
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44.4%
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Not enough information to determine
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