Answered: DeGeneres Co. had total common equity…

DeGeneres Co. had total common equity at the end of last year of $510,000, and its net income after taxes was $81,600. What was its ROE? A. 14.71% B. 15.10% C. 16.00% D. 15.30% E. 13.90%

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 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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100%

Can you explain the correct methodology to solve this financial accounting problem?

DeGeneres Co. had total common equity
at the end of last year of $510,000, and
its net income after taxes was $81,600.
What was its ROE?
A. 14.71%
B. 15.10%
C. 16.00%
D. 15.30%
E. 13.90%

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