The financial statements of Snapit Company are given below.
-Refer to the financial statements of Snapit Company.The firm's return on equity ratio for 2009 is ________.
A)0.1235
B)0.0296
C)0.2960
D)2.2960
E)none of the above

Question

The financial statements of Snapit Company are given below. 
-Refer to the financial statements of Snapit Company.The firm's return on equity ratio for 2009 is ________.
A)0.1235 
B)0.0296 
C)0.2960 
D)2.2960 
E)none of the above

Quizplus · Accepted Answer

Return on equity (ROE) is calculated as net income divided by shareholder's equity. The correct ratio for Snapit Company in 2009 is 0.2960, which corresponds to option C.

The Financial Statements of Snapit Company Are Given Below