To the nearest hundredth of a percent, what is the return on equity ratio 2016 for FoodValu?
A) 21.48%
B) (61.89)%
C) (152.83)%
D) Not enough information is provided
Answer B

Question

Quizplus · Accepted Answer

ROE = Net income / Average stockholders' equity
= $ (2,080) / [($4,042+ $2,680)/2] = $ (2,080) / $3,361 = (61.89)%
Stockholders' equity 2016 = $24,106 - $20,064 = $ 4,042
Stockholders' equity 2015 = $27,516 - $24,836 = $ 2,680

To the Nearest Hundredth of a Percent, What Is the Return