Calculate the 2009 return on equity (ROE) of a stable company using the following data: Total sales
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Question:
Calculate the 2009 return on equity (ROE) of a stable company using the following data:
Total sales d2500000
Net income d2000000
Beginning of year total assets d50000000
Beginning of year total liabilities d35000000
Number of shares outstanding at the end of 2009 1000000
Price per share at the end of 2009 d20
A. 10.0%
B. 13.3%
C. 16.7%
Holding all other factors constant which of the following situations will most likely lead to an increase in a company's return on equity? The market price of the company's shares increases. Net income increases at a slower rate than shareholders' equity. The company issues debt to repurchase outstanding shares of equity.
Related Book For
Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
ISBN: 978-1118630914
1st edition
Authors: Robert A.Weigand
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