Use the following information to answer questions 28 and 29.
Kestal Ltd reported sales of $500 000 for the year ending 31 December. The net profit before interest and tax was $120 000, and the net profit after tax was $90 000. The average of total assets was
$1 000 000. The average shareholders' equity was $700 000.
-What is the return on equity for the year ending 31 December?
A) 9%
B) 12%
C) 12.9%
D) 17.1%

Question

Quizplus · Accepted Answer

Return on equity = Net profit after tax / Average shareholders' equity= $90,000 / $700,000= 12.9%

Use the Following Information to Answer Questions 28 and 29