A company projects an EPS of $1.62 on a basis of 7,333,000 outstanding shares. They recently paid a $0.41 dividend on a reported EPS of $1.50 and have no plans of adjusting their level of payout. They estimate there will be $88,463,200 worth of equity next year. Assume inflation is 3% and that other stocks of similar risk return 12.22%.
How do I calculate Return on Equity Ratio?
ROE=net income/average equity . What is the net income?Is it 1.5x7333000?