A Company Has Net Income of $5

question 96

Multiple Choice

A company has net income of $5.6 million.Shareholders' equity at the beginning of the year is $32.55 million and,at the end of the year,it is $38.15 million.The only change to shareholders' equity came from net income.The ROE ratio is approximately:

• A)1.15
• B)0.16
• C)0.87
• D)6.64

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Definitions:

Consumption

The use of goods and services by households or the amount spent on them.

GDP

The total worth of goods and services generated inside the confines of a country during a set period, known as Gross Domestic Product, acts as a wide-ranging gauge of the country's economic health.

Consumption

Consumption refers to the use of goods and services by households. It is a primary component of economic activity, measuring the total value of all goods and services consumed over a specific time period.

Disposable Income

The total amount of money available to an individual or household for spending and saving after income taxes have been deducted.