Calculate Luther's Return of Equity (ROE),return of Assets (ROA),and Price-To-Earnings

question 80

Essay

Calculate Luther's return of equity (ROE),return of assets (ROA),and price-to-earnings ratio (P/E)for the year ending December 31,2008.

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Definitions:

Stockholder Investments

Funds or assets that shareholders contribute to a corporation in exchange for ownership interest in the form of stock.

Dividends

Dividends refer to payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Expense Recognition

An accounting principle that matches expenses with revenues in the period in which the incurred expense contributes to revenue generation, regardless of when the cash transaction happens.

Revenue Reported

The total amount of income recognized by a company during a specific accounting period from its business activities.