Moore Corporation Stockholders' Equity Calculation

Calculating Stockholders' Equity for Moore Corporation

Moore Corporation has earned $205,500 after tax. The return on equity for Moore Corporation is 18%. What's Moore's stockholders' equity?

Return on equity is calculated using the formula:

Return on equity = Earning after tax / Stockholder's equity

Therefore, we can calculate the stockholder's equity by rearranging the formula:

Stockholder's equity = Earning after tax / Return on equity = 205500 / 0.18 = $1,141,666.67

What is the stockholders' equity for Moore Corporation based on the given data? Based on the data provided, Moore Corporation's stockholders' equity is $1,141,666.67.
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