The 2016 balance sheet of E.I. du Pont de Nemours and Company shows average DuPont shareholders' equity attributable to controlling interest of $9,996 million, net operating profit after tax of $2,308 million, net income attributable to DuPont of $2,513 million, and common shares issued of 950.044 million.
Assume the company has no preferred shares issued. DuPont's return on equity (ROE) for the year is:
A) 30.7%
B) 37.6%
C) 25.1%
D) 36.4%
E) There is not enough information to calculate the ratio.

Question

Quizplus · Accepted Answer

Return on Equity (ROE) is calculated as Net Income divided by Shareholders' Equity. Given the net income attributable to DuPont of $2,513 million and average shareholders' equity of $9,996 million, ROE = ($2,513 / $9,996) * 100 = 25.1%.

The 2016 Balance Sheet of E