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The question you need to answer to get an additional 5 marks in the midterm is: Walmart's ROE is 1 2 . 5 % as

The question you need to answer to get an additional

5

marks in the midterm is:

Walmart's ROE is

12.5 %

as indicated in the class slides vs Target's ROE

= 25 % .

Why do investors prefer Walmart over Target as far as investment is concerned

-

The price

/

earnings ratio of Walmart is higher than Target.

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