a. Why is the return on stockholders equity by a thriving business ordinarily higher than the return
Question:
a. Why is the return on stockholders’ equity by a thriving business ordinarily higher than the return on total assets?
b. Should the return on common stockholders equity normally be higher or lower than the return on total stockholders’ equity? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (10 reviews)
a A successful corporation typically has a larger return on equity ROE than return on total assets R...View the full answer
Answered By
Kenneth Mutia
I have a B.S. in Statistics from the Jomo Kenyatta University of Agriculture and technology. I have been an academic tutor for over 3 years. I have a passion for helping students reach their full potential and am dedicated to helping them succeed. I am patient and adaptable, and I have experience working with students of all ages and abilities, from elementary school to college in their various fields. I have a wide scope of diverse tutoring experience in several courses of study with significant success as a tutor.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
(a) Why is the rate earned on stockholders equity by a thriving business ordinarily higher than the rate earned on total assets? (b) Should the rate earned on common stockholders equity normally be...
-
a. Why is the rate earned on stockholders equity by a thriving business ordinarily higher than the rate earned on total assets? b. Should the rate earned on common stockholders equity normally be...
-
a. Why is the rate earned on stockholders equity by a thriving business ordinarily higher than the rate earned on total assets? b. Should the rate earned on common stockholders equity normally be...
-
Determine whether each function is one-to-one. If it is, find the inverse. f(x) = 4x - 1
-
A random sample of 100 students is selected from the large student population at Eastern Colorado State University. A second sample, this one of size 200, is selected from the large student...
-
Punjab Company reported the following information for November and December 2014. Punjabs ending inventory at December 31 was destroyed in a fire. Instructions (a) Compute the gross profit rate for...
-
A patient was admitted to the hospital for an outpatient surgical procedure. Discharge was on the same day, and recovery continued at home. This is an example of what type of health care? A. Primary....
-
Mitchell Co. is experiencing a decrease in sales and operating income for the fiscal year ending December 31, 2012. Gene Lumpkin, controller of Mitchell Co., has suggested that all orders received...
-
Calculate the monthly payment for a 1 5 year fixed loan at 3 . 2 3 . 2 % per year compounded monthly if you are borrowing $ 3 0 5 , 0 0 0 . 0 0 $ 3 0 5 , 0 0 0 . 0 0 . The loan is amortized. Round...
-
a. Why is it advantageous to have a high inventory turnover? b. Is it possible for the inventory turnover to be too high? Discuss. c. Is it possible to have a high inventory turnover and a high days...
-
Why would the dividend yield differ significantly from the return on common stockholders equity?
-
Eight horses in a racewear numbers 1, 2, 3, 4, 5, 6, 7, and 8. What is the probability that the first three horses to finish the race will be numbered 1, 2, and 3, respectively?
-
Blockchain technology and its applications in enhancing supply chain processes . 1. Describe the technology 2. Describe the use of this technology in two supply chain processes/applications. 3....
-
Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 40,500 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $729,000...
-
Draw the products of the reaction of the substituted cyclopntene SHOWI below with HBr under kinetic (cold temperatures) and thermodynamic (warm temperatures). + HBr kinetic conditions thermodynamic...
-
An organization is considering adopting a new technology that could potentially replace 350 human jobs at their largest manufacturing facility. 1. What ethical considerations should be taken into...
-
Identify the point of consumer equilibrium and label it X. Mark the original consumption levels for both goods. (Circle one) Which good is higher in price, a) wool or b) lamb chops? Explain briefly....
-
Consider an Al-4% Si alloy (Figure 11-19). Determine (a) If the alloy is hypoeutectic or hypereutectic; (b) The composition of the first solid to form during solidification; (c) The amounts and...
-
The registrar of a college with a population of N = 4,000 full-time students is asked by the president to conduct a survey to measure satisfaction with the quality of life on campus. The following...
-
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
1. What is POMR? 2. How is POMR measured? POMR should be measured at two time periods: death on the day of surgery and death before discharge from hospital or within 30 days of the procedure,...
-
Sora Industries has 60 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years: a. Suppose Sora's revenue and free...
-
Question 10 2 A 25-year corporate bond has a par value of $5,000 and a 7% annual coupon rate. Assume that your required rate of return is 9.5% and that you plan to hold onto this bond for 19 years....
Study smarter with the SolutionInn App