Cordoza Corporation had profit of $400,000 in 2014. Total shareholders' equity was $1,400,000 at December 31, 2012; $1,500,000 at December 31, 2013; and $1,600,000 at December 31, 2014.
Instructions
Calculate return on equity for 2014 and explain what it means.

Question

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The Answer of Cordoza Corporation had profit of $400,000 in 2014. Total shareholders' equity was $1,400,000 at December 31, 2012; $1,500,000 at December 31, 2013; and $1,600,000 at December 31, 2014.
Instructions
Calculate return on equity for 2014 and explain what it means.

Cordoza Corporation Had Profit of $400,000 in 2014