USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted)

-Refer to Exhibit 9.16. Calculate the return on equity (ROE) for Rollerball Corporation and the Industry. Rollerball Industry Average
A) 115.0% 67.5%
B) 65.7% 33.0%
C) 41.8% 33.0%
D) 19.1% 15.7%
E) 8.7% 15.7%

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted)
  
-Refer to Exhibit 9.16. Calculate the return on equity (ROE) for Rollerball Corporation and the Industry. Rollerball Industry Average
A) 115.0% 67.5% 
B) 65.7% 33.0% 
C) 41.8% 33.0% 
D) 19.1% 15.7% 
E) 8.7% 15.7%

Quizplus · Accepted Answer

The correct choice is C because it shows the calculated return on equity (ROE) for Rollerball Corporation as 41.8% and the Industry Average as 33.0%, which matches the given data.