Question

A company has the following information: Return on Assets = 0.12 Total liabilities = $281,914 Total...

A company has the following information:

Return on Assets = 0.12

Total liabilities = $281,914

Total Equity = $181,068

Calculate the company’s return on equity

the answer is 0.31 but I don't know how to do the working.

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Answer #1

Calculation of return on equity We already know the accounting equation Assets = Liabilities + Stock holders equity Assets =

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