What is the return on equity (ROE) for Katz given a net income of $121,000 and total equity of $335,000?

To determine the return on equity (ROE), the formula used is:

ROE = (Net Income / Total Equity) × 100

In this case, you have a net income of $121,000 and total equity of $335,000. Plugging these values into the formula gives:

ROE = ($121,000 / $335,000) × 100

Calculating that step by step:

1. Divide the net income by total equity:

$121,000 ÷ $335,000 = 0.3612 (approximately)

2. To convert this decimal into a percentage, multiply by 100:

0.3612 × 100 = 36.12%

Thus, the return on equity for Katz is 36.12%, making this the correct answer. This metric is crucial in analyzing how effectively a company is using its equity to generate profits, and a higher ROE typically indicates more efficient management of equity capital.