Spartacus Inc.,has sales of $4,500,000,net income of $250,000,assets worth $3,700,000,and total common stockholder equity of $2,500,000.The ROE for Spartacus is:

Name: Spartacus Inc.,has sales of $4,500,000,net income of $250,000,assets worth $3,700,000,and total common stockholder equity of $2,500,000.The ROE for Spartacus is:
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

ROE (Return on Equity) = Net Income/Total Shareholder Equity
ROE = 250,000/2,500,000
ROE = 0.1 or 10%
Therefore, the correct option is C - 10.00%.