The return on the market value of equity is calculated as follows: $8/710 divided by the average number of shares outstanding (100).
2018 ratio calculations:
1) Net income divided by equity multiplied by 100 is return on equity.
$170/$1,780 multiplied by 100 equals 9% return on equity.
The return on the market value of equity is calculated as follows: $8/710 divided by the average number of shares outstanding (100).
Earnings per share equals net income divided by the typical number of shares outstanding, which is $170/710, or $0.24.
Return on Equity: The return on equity measures an organization's financial performance and assesses how well management uses its resources to generate profits.
Return on equity market value: This gauges the profit yield on the market capitalization of stocks. The intrinsic value of a stock is calculated by dividing the share price by the total number of outstanding shares. The market capitalisation is another name for it.
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