Firm A and firm B have the same ROA, yet firm As ROE is higher. How can

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Firm A and firm B have the same ROA, yet firm A’s ROE is higher. How can you explain this?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 08:00 AM

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Firm A and firm B have the same ROA, yet firm As ROE is higher. How can

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Return on equity ROE is calculated by dividing net income by share...View the full answer

Investments

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