Real Estate Math
A Utah investor's return on equity (ROE) is cash flow ÷ equity. If annual cash flow is $18,000 and equity is $200,000, what is the ROE?
A9%✓ Correct
B10%
C8%
D11%
Explanation
ROE = $18,000 ÷ $200,000 = 0.09 = 9%.
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