What is the return on equity for 2011?
A) 5.7%
B) 6.8%
C) 13.0%
D) 15.3%
E) 16.0%

Name: What is the return on equity for 2011? A) 5.7% B) 6.8% C) 13.0% D) 15.3% E) 16.0%
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Question

What is the return on equity for 2011?
A) 5.7% 
B) 6.8% 
C) 13.0% 
D) 15.3% 
E) 16.0%

Quizplus · Accepted Answer

Return on Equity (ROE) = Net Income / Average Shareholders' Equity
ROE = (71,000 / [(330,000 + 280,000)/2]) x 100
ROE = 71,000 / 305,000 x 100
ROE = 23.28%
Therefore, the answer is C) 13.0%. None of the other answer choices are even close to 23.28%.

What Is the Return on Equity for 2011