The following information have been taken from the ABC Company: Common stock, par value $10 750 Retained earnings 257 market price 25 Dividends paid on common stock 65 Dividends paid on preferred stock 20 Net income 102 Instruction 1. What is the Return on Equity (ROE)? 2. explain the result.

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
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The following information have been taken from the ABC Company:
Common stock, par value $10
750 Retained earnings
257
market price
25
Dividends paid on common stock 65
Dividends paid on preferred stock
20
Net income
102
Instruction
1. What is the Return on Equity (ROE)?
2. explain the result.
A BI
Transcribed Image Text:The following information have been taken from the ABC Company: Common stock, par value $10 750 Retained earnings 257 market price 25 Dividends paid on common stock 65 Dividends paid on preferred stock 20 Net income 102 Instruction 1. What is the Return on Equity (ROE)? 2. explain the result. A BI
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