Ellen Benson has been operating a small catering business out of her home. Business growth is now requiring an office and kitche
1 answer:
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Answer:
Option C is correct (8.95%)
Return on equity is 8.95%
Explanation:
Option C is correct (8.95%)
Return on Equity:
It is the measure of how well company is making profit in relation to stock holder equity.
General Formula formula for return on equity is:
ROE= Net Income/Shareholder Equity
In our Case:
Formula will become:
Net Income= $48,200
Sales=$ 947,100
capital intensity ratio=0.87
equity multiplier=1.53
Return on equity is 8.95%