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

Quizplus · Accepted Answer

ROE = Net Income/Shareholder's Equity
ROE = $2 million/$10 million
ROE = 0.2 or 20%

Crazer Bank Has a Profit After Taxes of $2 Million