Return on owner's equity

ROE = (Net Income) / Common Equity According to the textbook, we only take the year-end value of common equity and not an average. And yet, the solution to the problem on reading 38 uses an average of common equity. Which is it? Thanks

It’s all of those and beginning of the year equity as well. Depends on what you are trying to make inferences about. On the exam you won’t have to guess.