Question

A company has net income of $5.6 million. Stockholders' equity at the beginning of the year is $32.55 million and, at the end of the year, it is $38.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately:

A) 0.15.

B) 0.16.

C) 0.87.

D) 6.64.

Answer

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