A company has a net income of $31.10 million. Stockholders' equity at the beginning of the year is $75.05 million and, at the end of the year, it is $123.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately: A. 0.41 B. 0.31 C. 3.96 D. 0.25
A company has a net income of $31.10 million. Stockholders' equity at the beginning of the year is $75.05 million and, at the end of the year, it is $123.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately: A. 0.41 B. 0.31 C. 3.96 D. 0.25
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 53E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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![A company has a net income of $31.10 million.
Stockholders' equity at the beginning of the year
is $75.05 million and, at the end of the year, it is
$123.15 million. The only change to stockholders'
equity came from net income. The return on
equity ratio is approximately:
A. 0.41
B. 0.31
C. 3.96
D. 0.25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe9090aa-e906-492d-8b6d-ff5838a95864%2F79e8abc7-6018-4433-8082-02c4948ea18b%2Fmbmfvg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company has a net income of $31.10 million.
Stockholders' equity at the beginning of the year
is $75.05 million and, at the end of the year, it is
$123.15 million. The only change to stockholders'
equity came from net income. The return on
equity ratio is approximately:
A. 0.41
B. 0.31
C. 3.96
D. 0.25
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