The return on assets for Zhang Corporation is 7.6%. During the same year, Zhangs return on common

Question:

The return on assets for Zhang is 7.6%. During the same year, Zhang’s return on common stockholders’ equity is 12.8%. What is the explanation for the difference in the two rates?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...