Brief Exercise 11-10 SUPERVALU, one of the largest grocery retailers in the Unit

Question

Brief Exercise 11-10 SUPERVALU, one of the largest grocery retailers in the United States, is headquartered in Minneapolis. Suppose the following financial information (in millions) was taken from the company's 2017 annual report: net sales $43,200, net income $360, beginning stockholders' equity $2,520, and ending stockholders' equity $2,805. There were no dividends paid on preferred stock. Compute the return on common stockholders' equity. (Round answer to 2 decimal places, e.g. 12.56%.) The return on common stockholders' equity ratio LINK TO TEXT INTERACTIVE TUTORIAL

Explanation / Answer

Return on common stockholders' equity = Net income / Average stockholders' equity

= $360 / [($2,520 + $2,805) / 2]

= 13.52%

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