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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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