KL has the following capital and reserves at 31 December 20X9:

$'000

Ordinary shares 300

8% irredeemable preference shares 100

Retained earnings 150 550

KL also had $200 000 10 per cent loan notes on issue throughout the year. Retained profit for the year was $20 000 after paying the preferred dividend and an ordinary dividend of $7500. What was the return on equity for the year ended 31 December 20X9?

 

Answer rating: 100% (QA)

To calculate the return on equity ROE for the year ended December 31 20X9 we need to divide the net ... View the full answer