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Morgarella [4.7K]
4 years ago
14

Achbar Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Achbar Corporation's

stockholders' equity to the nearest dollar is        A. $14,720.   B. $140,720.   C. $140,720,000.   D. $1,407,200.
Mathematics
1 answer:
zmey [24]4 years ago
7 0

<u>Answer:</u>

The correct answer option is D. D. $1,407,200.

<u>Step-by-step explanation:</u>

We know that Achbar Corporation has earned $175,900 after the deduction of all the taxes and the return on equity calculated by the accountant is 12.5%.

So assuming the Achbar Corporation's stockholders' equity to be x, we can find the value of x as shown below:

12.5% × x =  $175,900

"Percent" or "%" means "out of 100" or "per 100", therefore 12.5% can be written as:

\frac{12.5}{100} × x =  $175,900

x=\frac{175900*100}{12.5}\\ \\x=1407200

Therefore, Achbar Corporation's stockholders' equity to the nearest dollar is $1407200.


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