Modern Comics Inc., has sales of $2,500,000, net income of $50,000, as
Modern Comics Inc., has sales of $2,500,000, net income of $50,000, assets worth $1,700,000, and total common stockholder equity of $1,500,000. The ROE for the firm is:
A) 68.00%.
B) 60.00%.
C) 2.94%.
D) 3.33%.
ANSWER
D
Explanation: D) ROE = NI/Equity = $50,000/$1,500,000 =3.33%
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