A Company Has Net Income of $5

question 38

Multiple Choice

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 ROE ratio is approximately:

• A) 1.15.
• B) 0.16.
• C) 0.87.
• D) 6.64.

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Definitions:

Agrarian-Base

Relating to or concerning the land, especially in terms of agricultural production.

Environmental Quality

The state or condition of the environment, including factors like air and water purity, noise levels, and the health of ecosystems.

Social Audit

A formal review of a company's endeavors, procedures, and code of conduct regarding social responsibility and its contribution to society's well-being.

Triple Bottom Line

A sustainability framework that measures a company's success based on three Ps: People, Planet, and Profit, highlighting the importance of social and environmental responsibility.