Zero Corp's total common equity at the end of last year was $510,000 and its net income was $70,000.What was its ROE?
A) 16.33%
B) 13.73%
C) 16.06%
D) 11.39%
E) 16.61%

Name: Zero Corp's total common equity at the end of last year was $510,000 and its net income was $70,000.What was its ROE? A) 16.33% B) 13.73% C) 16.06% D) 11.39% E) 16.61%
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Question

Quizplus · Accepted Answer

ROE (Return on Equity) is calculated as Net Income divided by Total Common Equity. So, for Zero Corp, it's $70,000 / $510,000 = 0.13725 or 13.73%.

Zero Corp's Total Common Equity at the End of Last