Lunatic Solutions, Inc. had total common equity of $640,000 at the end of last year, and its net income after taxes was $96,000. What was its Return on Equity (ROE)? A. 13.50% B. 15.00% C. 16.25% D. 14.00%

Lunatic Solutions, Inc. had total common equity of $640,000 at the end of last year, and its net income after taxes was $96,000. What was its Return on Equity (ROE)? A. 13.50% B. 15.00% C. 16.25% D. 14.00%

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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I need help solving this financial accounting question with the proper methodology.

Lunatic Solutions, Inc. had total common equity of $640,000 at the end of last
year, and its net income after taxes was $96,000.
What was its Return on Equity (ROE)?
A. 13.50%
B. 15.00%
C. 16.25%
D. 14.00%

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