• Mar 13th 2010, 09:54 PM
shell26
PLEASE HELP WITH THIS PROBLEM.. I HAVE TO SHOW ALL MY WORK AND I CAN'T FIGURE THIS OUT. I NEED SOMEONE TO WRITE IT OUT FOR ME.(Worried) THANKS SOO MUCH..IF YOU COULD PLEASE HELP.
OKAY HERE IT IS:

THE NET INCOME FOR MOORE CORPORATION WAS 1,500,000 AND THE RETURN ON EQUITY WAS 21. WHAT IS THE AMOUNT OF EQUITY TO THE NEAREST DOLLAR?
• Mar 14th 2010, 02:49 PM
jass10816
Quote:

Originally Posted by shell26
PLEASE HELP WITH THIS PROBLEM.. I HAVE TO SHOW ALL MY WORK AND I CAN'T FIGURE THIS OUT. I NEED SOMEONE TO WRITE IT OUT FOR ME.(Worried) THANKS SOO MUCH..IF YOU COULD PLEASE HELP.
OKAY HERE IT IS:

THE NET INCOME FOR MOORE CORPORATION WAS 1,500,000 AND THE RETURN ON EQUITY WAS 21. WHAT IS THE AMOUNT OF EQUITY TO THE NEAREST DOLLAR?

Use this formula $ROE = \frac{NI}{equity}$

So, $21 = \frac{1500000}{equity}$ Solve for equity.