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FRA - Calculation of Equity
Okay, this might be quite simple for most of you, but i just couldn't get the calculation of equity from the given values in the problem, for the calculation of ROE.
So shoot away the solution please
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Now this is gonna bother me
is the answer 62%?
I did 944/ ((1400+1638)/2) = 0.62
Actually, i was looking to get just the calculation of equity. Because finding ROE wasn't my concern here, once i know the value of equity, i could calculate the rest. So thanks @christine, the value of equity is (1050 + 459) making it 1519. I just couldn't figure out how to arrive at that value (stupid me :S). So, the answer is 944/1519 is 62.15%.
Thanks everyone!