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Some of Intel's financial statement data includes:   2015   2016 Total assets 105,000 125,000 Net income 10,000...

Some of Intel's financial statement data includes:

  2015   2016

Total assets 105,000 125,000

Net income 10,000 11,000

Sales 95,000 100,000

Equity 30,000 32,000

Compute Intel's return on equity (ROE) for 2016.

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Answer #1

Solution:

Average Equity Fund: (30,000+32,000)/2=31,000

Intel's Return on Equity for 2016:-

Return on Equity (ROE) : Net Income/ Average Equty Fund

Return on Equity (ROE) : 11,000/31,000 =0.3549

Return on Equity (ROE) : 35.49%

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