Crazer Bank has a profit after taxes of $2 million, total assets of $100 million, and shareholders' equity of $10 million. Crazer's return on equity (ROE)is ____ percent.

Name: Crazer Bank has a profit after taxes of $2 million, total assets of $100 million, and shareholders' equity of $10 million. Crazer's return on equity (ROE)is ____ percent.
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

Return on Equity (ROE) is calculated as (Profit after Taxes / Shareholders' Equity) * 100. For Crazer Bank, ROE = ($2 million / $10 million) * 100 = 20%.

Crazer Bank Has a Profit After Taxes of $2 Million