You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent.

What is the return on equity?
A)46.36%
B)42.74%
C)25.12%
D)18.42%
E)6.67%

Question

You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent.

What is the return on equity?
A)46.36% 
B)42.74% 
C)25.12% 
D)18.42% 
E)6.67%

Quizplus · Accepted Answer

Total assets = $124 + $518 + $1,027 + $2,498 = $4,167 Total equity = $4,167 - $486 - $135 - $1,876 = $1,670 Net income = (1 - 0.34)($3,850 - $2,220 - $321 - $136)= $774.18 Return on equity = $774.18 / $1,670 = 0.4636,or 46.36%

You Have Obtained the Following Information for Blue Bell Farms