Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity during the year = $123,650. Return on equity (ROE) for the year is:A. 29.6%

B. 11.3%

C. 22.7%

D. 127.6%

E. There is not enough information to answer the question.

Question

Dante Hendrix

Business

3 July, 20:48

Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity during the year = $123,650. Return on equity (ROE) for the year is:A. 29.6%

B. 11.3%

C. 22.7%

D. 127.6%

E. There is not enough information to answer the question.

+1

Answers (1)

Know the Answer?

Hugh Dickerson · Answer 1

A. 29.6%

Explanation:

Return on Equity is the times of profit a owner can earn on the equity investment in the business. Higher ratio shows the business is more profitable.

As per given data

Net Income = $36,610

Average Equity = $123650

Return on Equity (ROE) = Net Income / Equity Investment

Return on Equity (ROE) = $36,610 / $123650

Return on Equity (ROE) = 0.296

Return on Equity (ROE) = 29.6%

Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity during the year = $123,650. Return on equity (ROE) for the year is:A. 29.6%B. 11.3%C. 22.7%D. 127.6%E. There is not enough information to answer the question.

Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity during the year = $123,650. Return on equity (ROE) for the year is:A. 29.6%

B. 11.3%

C. 22.7%

D. 127.6%

E. There is not enough information to answer the question.