Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's return on equity for Year 2 is closest to:

Name: Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's return on equity for Year 2 is closest to:
Brand: Quizplus
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Question

Neef Corporation has provided the following financial data from its balance sheet and income statement:   The company's return on equity for Year 2 is closest to:

Quizplus · Accepted Answer

Return on equity = Net income ÷ Average stockholders' equity*
= $13,000 ÷ $882,500 = 1.47% (rounded)
*Average stockholders' equity = ($885,000 + $880,000)÷ 2 = $882,500

Neef Corporation Has Provided the Following Financial Data from Its