Question
Company X has a debt-equity-ratio of 2.5, sales of $350 million, and NOI of $46.5 million. Company Z has a debt-equity-ratio of 3.6, sales of
Company X has a debt-equity-ratio of 2.5, sales of $350 million, and NOI of $46.5 million. Company Z has a debt-equity-ratio of 3.6, sales of $525 million and NOI of $76 million. Company Z has a total capitalization of $2.4 billion, whereas Company X is only 25% as large. Which company has the higher ROE? (Please show the calcualtion steps)
a) Company X
b) Company Z
c) Not enough info to calculate
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
17th Edition
1264072945, 978-1264072941
