Final answer:
Without the specific net income and shareholder's equity numbers for Moorehouse Inc., it is not possible to calculate the return on equity or determine the correct answer from the options provided. Option b is the correct answer.
Step-by-step explanation:
The student is asking to calculate the rate of return on shareholder's equity for Moorehouse Inc based on given financial statements. The correct answer for this requires additional financial data such as net income and average shareholder's equity, which are not provided in the details accompanying the question. Without specifics on Moorehouse Inc's financial performance or equity totals, it is not possible to accurately calculate the return on equity (ROE). Therefore, unfortunately, we cannot determine whether the correct answer is 11.4%, 56.7%, 3.4% or 16.8% based on the information currently available.
Return on equity (ROE) is a key indicator of financial performance and is calculated by dividing net income by average shareholder's equity. This measure indicates how effectively management is using shareholders' funds to generate profits.
For example, if Moorehouse Inc had a net income of $20 million and its average shareholder's equity was $100 million, the ROE would be calculated as ($20 million / $100 million) x 100 = 20%. Unfortunately, without the specific net income and shareholder's equity numbers for Moorehouse Inc, selecting the correct option is not viable.