Ringo Bank has a profit after taxes of $1.5 million, total assets of $50 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 $1.5 million, total assets of $50 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 as net income divided by shareholder's equity. Therefore, ROE for Ringo Bank is (1.5/30) = 0.05 or 5.0%. The correct answer is B.

Ringo Bank Has a Profit After Taxes of $1