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Company A has a return on assets of 4% and a return on equity of 15%, while company B has a return on assets of
Company A has a return on assets of 4% and a return on equity of 15%, while company B has a return on assets of 4% and a return on equity of 10%. Is company A more likely to be a better investment for shareholders than company B? Under what circumstances would you prefer to be a shareholder of company A?
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