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Calculate Yahoo! And Alphabets ROE. Compare their ROE (what does high ROE mean?) Yahoo: Sale: 17.1429 Net income: -15 Total Equity: 100 Total assets: 155.844

Calculate Yahoo! And Alphabets ROE. Compare their ROE (what does high ROE mean?)

Yahoo:

Sale: 17.1429

Net income: -15

Total Equity: 100

Total assets: 155.844

Alphabet:

Sale: 62.385

Net income: 13.6

Total Equity: 100

Total assets: 122.5645

Yahoo: -15%

Alphabet: 13.6%

Alphabet is more profitable than Yahoo

1. Use Dupont analysis to explain why the two companys ROE is different.

2. Is 1 dollar today the same as 1 dollar 1 year from now? Explain.

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