Company A has a return on assets of 8% but a return on common shareholders' equity of

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Company A has a return on assets of 8% but a return on common shareholders' equity of 15%. Company B has the same return on assets of 8% but a return on common shareholders' equity of 9%. How can both of these companies, neither of which has any preferred shares, have the same return on assets but a different return on common shareholders' equity?
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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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