Cougar Co. has a return on equity of 15.2 percent and a book value per share of $6.78. If the company's net income is $68,000, how many shares are outstanding?

Question

Quizplus · Accepted Answer

The number of shares outstanding can be calculated by dividing the net income by the product of return on equity (ROE) and book value per share. So, the calculation is $68,000 / (15.2% * $6.78) = 65,984 shares.

Cougar Co Has a Return on Equity of 15