From the data below; calculate the returns on equity?

Gross earnings……………………N950 000
Current liabilities……………….N100 000
Operating expenses………………..N350 000
10% debentures……………………N400 000
Shareholder’s fund………………..N1300 000
Corporate tax is 30%

A. 33%
B. 35%
C. 20%
D. 30%

Correct Answer:

Option D – 30%