K Grocers' 2016 balance sheet shows average shareholders' equity of $9,264 million, net income of $1,505 million, and common shares issued of $1,918 million.
The company has no preferred shares issued. K Grocers' return on common equity for the year is:
A) 16.25%
B) 2.74%
C) 36.5%
D) There is not enough information to calculate the ratio

Question

Quizplus · Accepted Answer

ROE = Net income/Average shareholders' equity = $1,505 million / $9,264 million = 16.245%

K Grocers' 2016 Balance Sheet Shows Average Shareholders' Equity of $9,264