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im confused with requirement 2. the options are (strong/weak), (higher/lower), and (pleased/unhappy). I only have one chance at this problem. not sure if what i
im confused with requirement 2. the options are (strong/weak), (higher/lower), and (pleased/unhappy). I only have one chance at this problem. not sure if what i have selected right now is correct. help!
Average total assets Average common stockholders' equity Leverage ratio 50,000 25,000 2 d. Select the formula labels and then enter the amounts to calculate return on assets (ROA). (Round your answer to one decimal place, XX%.) Net profit margin ratio Asset turnover ratio ROA 22% Xx e-Select the formula labels and then enter the amounts to calculate return on equity (ROE). (Round your answer to one decimal place, X.X%.) Return on assets Leverage ratio ROE 2 44 % Requirement 2. Which is higher, ROA or ROE? Does this make sense for stockholders? Why or why not? Both ROA and ROE are strong. Shareholders prefer a higher return on equity than return on assets. Shareholders should be pleased with this returnStep by Step Solution
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