A company has a net income of $40 million. Stockholders' equity at the beginning of the year is $120 million, and at the end of the year, it is $160 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately: 1.0.33 2.0.25 3.0.30 4.0.35

A company has a net income of $40 million. Stockholders' equity at the beginning of the year is $120 million, and at the end of the year, it is $160 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately: 1.0.33 2.0.25 3.0.30 4.0.35

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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Question

Ans financial accounting question

A company has a net income of $40 million. Stockholders'
equity at the beginning of the year is $120 million, and at
the end of the year, it is $160 million. The only change to
stockholders' equity came from net income. The return
on equity ratio is approximately:
1.0.33
2.0.25
3.0.30
4.0.35

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