The Net Profit of a Company for the Year Ended

question 60

Multiple Choice

The net profit of a company for the year ended was $550,000.The company has no preference shares.Ordinary shareholders' equity was $1,600,000 at the beginning of the year and $2,600,000 at the end of the year.Calculate the return on ordinary shareholders' equity.

• A)21.15%
• B)34.38%
• C)17.46%
• D)26.19%

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Definitions:

Andrew Johnson

The 17th President of the United States who served from 1865 to 1869, following the assassination of Abraham Lincoln.

Wade-Davis Bill

A 1864 proposal for the Reconstruction of the South that required a majority of prewar voters to swear allegiance to the Union.

Reconstruction Act

Legislation passed in 1867 that outlined the conditions for the Southern States to be readmitted to the Union after the Civil War, including requirements for suffrage for black males.

Ex-Confederate State

A state that was part of the Confederacy during the American Civil War, fighting to preserve slavery and secession from the Union.