The return on total assets for Windsor Corporation is (7.6 %). During the same year Windsor's return

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The return on total assets for Windsor Corporation is \(7.6 \%\). During the same year Windsor's return on common stockholders' equity is \(12.8 \%\). What is the explanation for the difference in the two rates?

Which two ratios do you think should be of greatest interest to:

(a) A pension fund considering the purchase of 20 -year bonds?

(b) A bank contemplating a short-term loan?

(c) A common stockholder?

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Financial Accounting

ISBN: 9780471169208

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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