Ringo Bank has a profit after taxes of $3.0 million, total assets of $300 million, and shareholder's equity of $30 million. Ringo's return on equity (ROE) is ____ percent.

Name: Ringo Bank has a profit after taxes of $3.0 million, total assets of $300 million, and shareholder's equity of $30 million. Ringo's return on equity (ROE) is ____ percent.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

ROE is calculated by dividing the profit after taxes by shareholder's equity. Therefore, ROE = (3.0/30) x 100 = 10.0%. The correct answer is B, 10.0%.

Ringo Bank Has a Profit After Taxes of $3