Confu Inc. expects to have the following data during the coming year. What is the firm's expected ROE?
A) 12.51%
B) 13.14%
C) 13.80%
D) 14.49%
E) 15.21%

Question

Quizplus · Accepted Answer

The expected ROE is calculated as follows:ROE = Net Income / Shareholder EquityNet Income = $1,000,000Shareholder Equity = $8,000,000ROE = $1,000,000 / $8,000,000 = 12.5%Therefore, the correct answer is A) 12.51%.

Confu Inc Expects to Have the Following Data During the Coming