The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the stock market for $27 each.
-Refer to the financial statements of Burnaby Mountain Trading Company.The firm's return on equity ratio for 2008 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.
A) 0.0409
B) 0.0429
C) 0.0462
D) 0.0923

Question

The financial statements of Burnaby Mountain Trading Company are given below.  Note: The common shares are trading in the stock market for $27 each.
-Refer to the financial statements of Burnaby Mountain Trading Company.The firm's return on equity ratio for 2008 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.
A) 0.0409 
B) 0.0429 
C) 0.0462 
D) 0.0923

Quizplus · Accepted Answer

The return on equity (ROE) is calculated by dividing net income by the average shareholders' equity. The correct choice is based on the provided options and the calculation using the average of the beginning and end of year equity figures.

The Financial Statements of Burnaby Mountain Trading Company Are Given