7. Last year both Hudson Homes and Baldwin Construction earned $1 million in net income. Both companies
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7. Last year both Hudson Homes and Baldwin Construction earned $1 million in net income. Both companies have assets of $10 million. However, Hudson generated a return on equity of 11.1%, whereas Baldwin produced a return on equity of20.0%. What can explain the differences in return on equity between the two companies?
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Investments
ISBN: 9788120321014
6th Edition
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
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