Final answer:
The ROA for Balthazar Corporation is calculated by first determining the Net Income using the given ROE and Total Equity. Once Net Income is found, it is divided by Total Assets and multiplied by 100 to get the ROA, which is 6.46%.
Step-by-step explanation:
The Return on Assets (ROA) for Balthazar Corporation can be calculated using the information provided. ROA is a measure of a company's profitability relative to its total assets and is expressed as a percentage. The formula for calculating ROA is Net Income divided by Total Assets, and the result is multiplied by 100 to get the percentage.
To find Balthazar's ROA, we need to calculate the Net Income first. This is because the question provides us with Return on Equity (ROE), which is Net Income divided by Total Equity. Given the ROE is 13.98%, we can find Net Income using the formula:
Net Income = ROE × Total Equity
Net Income = 0.1398 × 269
Net Income = 37.6242 (which we can round to 37.62 for simplicity)
Now, we can use the Net Income to calculate ROA:
ROA = (Net Income / Total Assets) × 100
ROA = (37.62 / 582) × 100
ROA = 6.46%
The ROA for Balthazar is 6.46%.