Return on Equity (ROE) can be calculated using the formula:
\[
ROE = \frac{\text{Net Income}}{\text{Average Shareholders' Equity}}
\]
Given that ROE is 18% (or 0.18) and the net income is $90,000, we can rearrange the formula to solve for average shareholders' equity:
\[
\text{Average Shareholders' Equity} = \frac{\text{Net Income}}{ROE}
\]
Now, substituting in the given values:
\[
\text{Average Shareholders' Equity} = \frac{90,000}{0.18} =


