A company has taxable income of $1,760 with a tax rate of 38 percent. Owners equity is:

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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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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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Question Posted: Jan 10, 2013 07:12 AM

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A company has taxable income of $1,760 with a tax rate of 38 percent. Owners equity is:

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Computation of the ROE ...View the full answer

Financial Accounting A User Perspective

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