Let's start with formula for Return on equity:
Return on Equity = Net Income/Shareholder's Equity
Net income (Given in Question for the year 2010) = $ 200,000
Shareholder's equity for 2010 = $ 465,000 (For year 2010)
So using the formula
Return on Equty = 200,000 (Net Income) / 465,000 (Shareholder's equity)
Return on Equity = 0.43
Now, lf we convert 0.43 to a percentage since we have to answer in percentage
0.43 = 43%
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?