Use the Table for the Question(s)below

question 50

Multiple Choice

Use the table for the question(s) below.

-Refer to the income statement above.Luther's return on equity (ROE) for the year ending December 31,2015 is closest to:

• A)2.0%
• B)6.5%
• C)8.4%
• D)12.7%
• E)32.5%

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Definitions:

Equity Account

An account representing the owner's or shareholders' residual interest in the assets of the entity after deducting liabilities.

Stockholders

Stockholders are individuals or entities that own shares of stock in a corporation, thereby holding ownership interests and potentially benefiting from the company's profitability through dividends and stock price appreciation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often providing dividends before common shares.

Stockholders' Equity

The ownership interest of shareholders in a company, calculated as total assets minus total liabilities.