Selected balance sheet and income statement information for Forester Company follows in millions:
$$\begin{array} { l r }
\text { Earnings before taxes } & \$ 850,175 \
\text { Average assets } & 5,456,781 \
\text { Net incame } & 1,614,471 \
\text { Average common stockholders' equity } & 4,481,322
\end{array}$$ a. Calculate the company's return on common stockholders' equity.
b. Explain what information this provides to management.

Question

Selected balance sheet and income statement information for Forester Company follows in millions:
 $$\begin{array} { l r } 
\text { Earnings before taxes } & \$ 850,175 \
\text { Average assets } & 5,456,781 \
\text { Net incame } & 1,614,471 \
\text { Average common stockholders' equity } & 4,481,322
\end{array}$$ a. Calculate the company's return on common stockholders' equity.
b. Explain what information this provides to management.

Quizplus · Accepted Answer

The Answer of Selected balance sheet and income statement information for Forester Company follows in millions:
 $$\begin{array} { l r } 
\text { Earnings before taxes } & \$ 850,175 \
\text { Average assets } & 5,456,781 \
\text { Net incame } & 1,614,471 \
\text { Average common stockholders' equity } & 4,481,322
\end{array}$$ a. Calculate the company's return on common stockholders' equity.
b. Explain what information this provides to management.

Selected Balance Sheet and Income Statement Information for Forester Company