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May I ask for a solution and explanation to the problem for a better understanding. Thank you! 13. Using Lettuce Company data, what is the return on equity for year 2?   a. 0.22 b. 0.10 c. 0.15 d. 0.11

May I ask for a solution and explanation to the problem for a better understanding. Thank you! 13. Using Lettuce Company data, what is the return on equity for year 2?   a. 0.22 b. 0.10 c. 0.15 d. 0.11

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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May I ask for a solution and explanation to the problem for a better understanding. Thank you!

13. Using Lettuce Company data, what is the return on equity for year 2?
 
a. 0.22
b. 0.10
c. 0.15
d. 0.11
Selected data for LETTUCE Company follow: Year 2 Year 1 Preference share, par value P50, 10%.. Ordinary share, par value P20.. Share premium - ordinary share.. Retained earning. P100,000 P100,000 . 400,000 400,000 100,000 100,000 140,000 120,000 60,000 10,000 Net income . 80,000 Dividends on preference share Dividends on ordinary share Market price per share, Dec 31.. 10,000 50,000 40,000 28.00 21.00
Transcribed Image Text:Selected data for LETTUCE Company follow: Year 2 Year 1 Preference share, par value P50, 10%.. Ordinary share, par value P20.. Share premium - ordinary share.. Retained earning. P100,000 P100,000 . 400,000 400,000 100,000 100,000 140,000 120,000 60,000 10,000 Net income . 80,000 Dividends on preference share Dividends on ordinary share Market price per share, Dec 31.. 10,000 50,000 40,000 28.00 21.00
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