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Suppose that you are an investor trying to decide between Company A and Company B, both retailers of sports wear. As profit margin is 30%,
Suppose that you are an investor trying to decide between Company A and Company B, both retailers of sports wear. As profit margin is 30%, asset turnover is 0.50, and equity multiplier is 3. Bs Profit Margin is 15%; Asset Turnover is 6; and Equity Multiplier of 0.50. What are the ROEs for both companies and briefly comment on how do they compare.
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