A company has taxable income of $1,760 with a tax rate of 38 percent. Owners equity is:
Question:
A company has taxable income of $1,760 with a tax rate of 38 percent. Owner’s equity is: $400 in stock, $200 in capital surplus, and $200 in retained earnings. What is the return on equity (ROE)?
a. 130%
b. 125%
c. 123%
d. 136%
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Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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