Use the table for the question(s) below.
Consider the following income statement and other information:

-Luther's return on equity (ROE)for the year ending December 31,2006 is closest to:
A) 2.0%
B) 6.5%
C) 8.4%
D) 12.7%

Question

Use the table for the question(s) below.
Consider the following income statement and other information:
 
-Luther's return on equity (ROE)for the year ending December 31,2006 is closest to:
A) 2.0% 
B) 6.5% 
C) 8.4% 
D) 12.7%

Quizplus · Accepted Answer

C) ROE = Net income / shareholders' equity = 10.6 / 126.6 = .084 or 8.4%

Use the Table for the Question(s) Below