Mars Corporation Has Provided the Following Data for Year 2

question 194

Multiple Choice

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000.The company's return on equity for Year 2 is closest to:

• A)5.91%
• B)7.40%
• C)3.84%
• D)71.20%

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Definitions:

Private Corporations

Companies that are owned by a small group of individuals and do not offer their shares of stock to the general public.

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada.

Mortgage Payable

A liability representing money owed on a long-term loan used to purchase property, typically secured by the property itself.

Financing Activities

Transactions related to raising capital and repaying shareholders, including issuing equity, obtaining loans, and paying dividends.