Help Save& Esl Submit Required information The Foundational 15 (LO1S-2, LO15-3,

Question

Help Save& Esl Submit Required information The Foundational 15 (LO1S-2, LO15-3, L015-4, LO1S-5, LO15-6) The following Information applies to the questons displeyed below Markus Company's common stock soild for $6.50 per share at the end of this year The company psid a common 3 dividend of $0.91 per share this year It aso provided the folowing dats excerpts from this year's financial Ending Beginning lalance Dalance $ 108,000 75,000 Cument assets 249000 233,000 975.000 S086,000 $ 97500 109500 Common stock, $t par value $??5,000 185,000 735,000 870000 Total Sablities and stockhoidenst equity $ 978,000 S1086.000 7 G H option command command option

Explanation / Answer

Return on Equity = [ Net Income / Average Total Stockholder’s Equity] x 100

= [$279,825 / {($735,000 + 870,00)/2}] x 100

= [$279,825 / 802,500] x 100

= 35% [Rounded to nearest whole percentage]

“Return on Equity = 35%”

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