Question 17

Use the following information in the table to answer the question below:

	Red Inc	Red Inc	Blue Corp	Blue Corp
Financial Year ending	2019	2020	2019	2020
Market Price	$40.80	$35.09	$33.10	$6.62
Total shares outstanding	7,550,000	7,550,000	7,200,000	7,200,000
Total shareholders equity	$91,000,000	$91,000,000	$92,000,000	$95,000,000
Net income	$8,451,061	$10,225,784	$8,580,333	$11,583,450

The Accounting Return on Equity for Red Inc in 2019 is closest to:

	a.	11.17%
	b.	9.29%
	c.	-14.65%