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ABC Inc. and XYZ Inc. reported Net Incomes of $100,000 and $250,000 respectively for the most recent fiscal year. Both companies have 50,000 shares of
ABC Inc. and XYZ Inc. reported Net Incomes of $100,000 and $250,000 respectively for the most recent fiscal year. Both companies have 50,000 shares of Common Stock issued and outstanding. The common stock was issued at $10 per share for each company. The market price per share of ABC s stock is $20 while XYZ 's is $40 per share. What is XYZ 's return-on-equity? 50% 400% 16% 20%
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