Computing return on equity


1. Firm's net income for year was $200,000. Average assets totaled $1.5 million, and average liabilities totaled $0.3 million. Return on equity was:

A. 13.3%
B. 16.7%
C. 10%
D. 20%

2. Write down two reasons why company would not declare dividends

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Accounting Basics: Computing return on equity
Reference No:- TGS021435

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