Factory A and Factory B have debt-total asset ratios of 45% and 25% and returns on total assets of 8% and 12%, respectively. What is the return on equity for Factory A and Factory B?
Factory A and Factory B have debt-total asset ratios of 45% and 25% and returns on total assets of 8% and 12%, respectively. What is the return on equity for Factory A and Factory B?
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 8P
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Transcribed Image Text:Factory A and Factory B have debt-total
asset ratios of 45% and 25% and returns
on total assets of 8% and 12%,
respectively. What is the return on equity
for Factory A and Factory B?
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