Which company has the greater return on equity based on the following information: Company 1 2 Capital Revenue 35,000 39,000 Other expenses 12,000 12,500 Interest
- Which company has the greater return on equity based on the following information:
| Company | 1 | 2 Capital |
| Revenue | 35,000 | 39,000 |
| Other expenses | 12,000 | 12,500 |
| Interest | 922 | 838 |
| Lease categorization | Operating | >75 of useful life |
| Lease payment | 5,750 | 5,223 |
| Life of lease | 4 | 5 |
| Current year of lease | 2 | 3 |
| Total equity | 500,000 | 620,000 |
| Incremental borrowing rate | 6% | 6% |
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Authors: Milton F Usry
9th Edition
053801881X, 978-0538018814
