Spartacus Inc., has sales of $4,500,000, net income of $250,000, asset
Spartacus Inc., has sales of $4,500,000, net income of $250,000, assets worth $3,700,000, and total common stockholder equity of $2,500,000. The ROE for Spartacus is:
A) 5.56%.
B) 6.76%.
C) 10.00%.
D) 55.56%.
ANSWER
C
Explanation: C) ROE = NI/Equity = $250,000/$2,500,000 = 10.00%
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