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Compare the return on equity (ROE) of two companies, Company A and Company B, for the fiscal year ended December 31, 20XX. Company A reported
Compare the return on equity (ROE) of two companies, Company A and Company B, for the fiscal year ended December 31, 20XX. Company A reported net income of $1,500,000 and shareholders' equity of $5,000,000, while Company B reported net income of $1,200,000 and shareholders' equity of $4,000,000. Calculate the ROE for each company and analyze their profitability and efficiency in generating returns for shareholders.
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