Sheffield Company Had $42 000 of Net Profit in 2013

Multiple Choice

Sheffield Company had $42 000 of net profit in 2013. Equity at the beginning of the year was $1 200 000 and at the end of the year was $1 600 000. Sheffield has no preference shares. Please calculate the rate of return on ordinary shareholders' equity. (Please round to three decimal places.)

A) 0.026
B) 0.032
C) 0.035
D) 0.030