BUSS 3083 strategic financial anaysis

Determine the ROE of a company with no minority interest and paying a tax rate of 30% using the following selected data:

	$
Net Income	1676
Shareholders' equity comprising	16463
Average common shareholders equity	15168
Average preferred shareholders' equity	1295
Average total assets	16168
Dividends to common shareholders	226
Dividends to preferred shareholders	84
The company advises that the interest expense =	10

ROE
ROA
CEL
CSL

(accurate to 1 decimal place; show as a percentage, e.g. 26.1, the percentage symbol is supplied) (Please refer to Chapter 5 of Palepu for a detailed discussion of these and other ratios)

Answer rating: 100% (QA)

To calculate the Return on Equity ROE of the company we use the f... View the full answer