Brief Exercise 8-20 SUPERVALU, one of the largest grocery retailers in the Unite

Question

Brief Exercise 8-20 SUPERVALU, one of the largest grocery retailers in the United States, is headquartered in Minneapolis. Suppose the following financial information (in millions) was taken from the company's 2017 annual report: net sales $44,597, net income $393, beginning stockholders' equity $2,581, and ending stockholders' equity $2,887. There were no dividends paid on preferred stock Compute the return on common stockholders' equity. (Round answer to 2 decimal places, eg, 12.56%.) The return on common stockholders' equity ratio Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Average stockholders equity=(Beginning stockholders equity+Ending stockholders equity)/2

=(2581+2887)/2=$2734

Return on common stockholders equity=Net income/Average stockholders equity

=(393/2734)

=14.37%(Approx).

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