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

Quizplus · Accepted Answer

ROE = Net Income / Shareholder's Equity
ROE = $3 million / $30 million
ROE = 0.1 or 10%

Ringo Bank Has a Profit After Taxes of $3 Million