A Business Reports the Following in Its Financial Statements Its Rate of Return on Shareholders' Equity Is:
A) 11

Multiple Choice

A business reports the following in its financial statements:
$$\begin{array} { l r } \text { Net profit before tax } & \$ 100 \\\text { Interest expense } & 20 \\\text { Income tax expense } & 30 \\\text { Preference dividends paid } & 10 \\\text { Ordinary dividends paid } & 15 \\\text { Total assets at the beginning of the year } & 750 \\\text { Total assets at the end of the year } & 850 \\\text { Total liabilities at the beginning of the year } & 375 \\\text { Total liabilities at the end of the year } & 425\end{array}$$
Its rate of return on shareholders' equity is:

A) 11.25%
B) 15.0%
C) 7.5%
D) 22.5%