Brooke Corporation has the following data: Net income 17,600 Preferred dividends 9,600 Average common stockholders' equity 80,000 Brooke's rate of return on common stockholders' equity is OA. 55% OB. 22% OC. 34% OD. 10% $
Brooke Corporation has the following data: Net income 17,600 Preferred dividends 9,600 Average common stockholders' equity 80,000 Brooke's rate of return on common stockholders' equity is OA. 55% OB. 22% OC. 34% OD. 10% $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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![Brooke Corporation has the following data:
Net income
$
OA. 55%
OB. 22%
OC. 34%
O D. 10%
17,600
9,600
80,000
Preferred dividends
Average common stockholders' equity
Brooke's rate of return on common stockholders' equity is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb4dcaa6-205c-4621-a1fc-c4c39ba5d20f%2Fc966fddb-ac37-4db9-b94c-7814390a915c%2Fox7koy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brooke Corporation has the following data:
Net income
$
OA. 55%
OB. 22%
OC. 34%
O D. 10%
17,600
9,600
80,000
Preferred dividends
Average common stockholders' equity
Brooke's rate of return on common stockholders' equity is
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