What Is the Rate of Return on Equity If Net

question 12

Short Answer

What is the rate of return on equity if net income is $22,700; preferred dividends are $3,000; sales are $100,000; and average common shareholders' equity is $86,000?

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Definitions:

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individuals pursuing their own interests unintentionally benefit society.

Adam Smith

An 18th-century Scottish economist and philosopher best known for his theories on free market economies and the concept of the 'invisible hand' guiding supply and demand.

Multinational Corporations (MNCs)

Companies that operate in several countries, often having a centralized head office where they coordinate global management.

Global Strategy

A methodology for conducting business around the world, including expanding operations and marketing to different countries.