Thomas Company had income before interest and taxes of $120,000.Interest expense for the period was $17,000 and income taxes amounted to $28,500.The average stockholders' equity was $680,000.What is Thomas' return on equity (ROE)?
A)17.65%.
B)15.15%.
C)13.46%.
D)10.96%.

Question

Quizplus · Accepted Answer

The return on equity ratio (10.96%) = Net income ($120,000 - $17,000 - $28,500) F1F1F1S1F1F1F10 Average stockholders' equity ($680,000)

Thomas Company Had Income Before Interest and Taxes of $120,000