The return on equity for a company that has sales of $43,000, net income of $13,000, and average Stockholders' Equity of $88,000 would be 48.86%.

Name: The return on equity for a company that has sales of $43,000, net income of $13,000, and average Stockholders' Equity of $88,000 would be 48.86%.
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Quizplus · Accepted Answer

The return on equity (ROE) is calculated as Net Income / Average Stockholders' Equity, which in this case is $13,000 / $88,000 = 0.1477 or 14.77%, not 48.86%.

The Return on Equity for a Company That Has Sales