Question on Accounting homework

Accounting
Tutor: None Selected Time limit: 1 Day

Dec 14th, 2014

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 Equity = Net Income/Shareholder's Equity

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%

Dec 14th, 2014

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Dec 14th, 2014
...
Dec 14th, 2014
Dec 7th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer