Ringo Bank has a profit after taxes of $3 million, total assets of $300 million, and shareholders' equity of $30 million. Ringo's return on equity (ROE)is ____ percent.

Name: Ringo Bank has a profit after taxes of $3 million, total assets of $300 million, and shareholders' equity of $30 million. Ringo's return on equity (ROE)is ____ percent.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

ROE is calculated as Net Income divided by Shareholder's Equity. Here, it's $3 million / $30 million = 0.1 or 10%.

Ringo Bank Has a Profit After Taxes of $3 Million