Question
Firm A and Firm B have debt / total asset ratios of 30 percent and 20 percent and return on total assets of 8 percent
Firm A and Firm B have debt / total asset ratios of 30 percent and 20 percent and return on total assets of 8 percent and 14 percent, respectively.
What is the return on equity for Firm A and Firm B?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
