Nicco Corporation had the following accounts at January 1, 2021: The company has profit of $ 79,000 in 2021 and paid $ 85,000 in dividends.
Instructions
a) Calculate the return on equity at December 31, 2021.
b) What does this ratio tell you about the corporation?

Question

Nicco Corporation had the following accounts at January 1, 2021:  The company has profit of $ 79,000 in 2021 and paid $ 85,000 in dividends.
Instructions 
a) Calculate the return on equity at December 31, 2021.
b) What does this ratio tell you about the corporation?

Quizplus · Accepted Answer

The Answer of Nicco Corporation had the following accounts at January 1, 2021:  The company has profit of $ 79,000 in 2021 and paid $ 85,000 in dividends.
Instructions 
a) Calculate the return on equity at December 31, 2021.
b) What does this ratio tell you about the corporation?

Nicco Corporation Had the Following Accounts at January 1, 2021