Laroche Company's return on common shareholders' equity for 20 × 6 was closest to:
A) 21.2%.
B) 22.0%.
C) 23.1%.
D) 24.0%.

Question

Quizplus · Accepted Answer

The calculation for return on common shareholders' equity is net income divided by average common shareholders' equity. Without the given values, we cannot provide a precise calculation, but we can eliminate choices that are significantly higher or lower than the typical range of return on equity for companies. A return on equity of 23.1% appears to be a reasonable and achievable figure, making choice C the best option.

Laroche Company's Return on Common Shareholders' Equity for 20 ×