Question
Evaluate the return on equity of three iconic companies: Company Net Income (in billions) Shareholder's Equity (in billions) Microsoft $60 $90 Amazon $25 $120 Coca-Cola
Evaluate the return on equity of three iconic companies:
Company | Net Income (in billions) | Shareholder's Equity (in billions) |
Microsoft | $60 | $90 |
Amazon | $25 | $120 |
Coca-Cola | $10 | $40 |
Requirements:
- Calculate the return on equity (ROE) for each company.
- Interpret the ROE values and discuss the profitability relative to shareholder equity.
- Compare the ROE values and analyze the financial performance in terms of shareholder returns.
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Principles of Accounting
Authors: Belverd Needles, Marian Powers, Susan Crosson
10th edition
618736611, 978-1111809508, 111180950X, 978-0618736614
