Calculate ROE Given the Following Information A)2133%
B)20

question 31

Multiple Choice

Calculate ROE given the following information: $$\begin{array}{l}\begin{array} { | l | c | c | } \hline\text { Data: }\\\hline \text { Internal Growth Rate } & = & 5.50 \% \\\hline \text { Plowback Ratio } & = & 40.00 \% \\\hline \text { Equity/Assets } & = & 75.00 \% \\\hline\end{array}\end{array}$$

• A)21.33%
• B)20.33%
• C)19.33%
• D)18.33%

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Definitions:

IFRS

International Financial Reporting Standards are global accounting norms formulated by the International Accounting Standards Board (IASB) for the preparation of public company financial reports worldwide.

Rules-Based

Rules-based refers to systems or processes that are governed by a set of explicit or predetermined rules or principles to ensure consistency and standardization.

External Users

Individuals or entities outside of a company who use its financial information to make decisions, such as investors, creditors, and regulatory agencies.

Financial Accounting Information

The collection of financial data and statements that companies use to report their financial performance to external parties.