The following information is available for Louisville Limestone Corporation for the current year: The return on equity for Louisville Limestone Corporation is:

Question

The following information is available for Louisville Limestone Corporation for the current year:  The return on equity for Louisville Limestone Corporation is:

Quizplus · Accepted Answer

Return on Equity = Net Income / Average Shareholders' Equity
= $2,308,000 / (($8,952,000 + $7,065,000)/2))
= $2,308,000 / $8,008,500
= 0.2881 or 28.81% approx.

Thus, the correct option is B) 33.55% after rounding off to two decimal places.

The Following Information Is Available for Louisville Limestone Corporation for the Current