What are the formulas to input the information for return on equity and return o

Question

What are the formulas to input the information for return on equity and return on assets?

NFT Consulting and Sales Inc Financial Ratios and Calculations Ratios The company could issue $2,000,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The company could issue $1,500,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 8%. The market rate for similar debt is 6%. The company could issue 400,000 additional shares of $1 par value common stock for $4 per share   Current Ratio Current Assets Current Liabilities                        157,360                        157,360                        157,360 Debt to Asset Ratio Total Debt Total Assets Return on Equity Net Income Total Equity                     1,769,566                     1,769,566                     2,969,566 Return on Assets Net Income Total Assets

Explanation / Answer

The formula for return on equity is as follows:

ROE=Net income/ Avergae shareholder's equity

Average shareholder's equity is calculated by adding opening and closing shareholder's equity and dividing it by 2.

The formula for return on assets is as follows:

ROA=Net income/ Total Assets

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