Assume the following data: EBIT = 400; Net income = 100; Equity = 1,000.Calculate the ROE (return on equity).
A)10 percent
B)12 percent
C)7.5 percent
D)30 percent

Name: Assume the following data: EBIT = 400; Net income = 100; Equity = 1,000.Calculate the ROE (return on equity). A)10 percent B)12 percent C)7.5 percent D)30 percent
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Quizplus · Accepted Answer

ROE (Return on Equity) is calculated as Net Income divided by Equity. Here, ROE = 100 / 1,000 = 0.10 or 10 percent.

Assume the Following Data: EBIT = 400; Net Income =