Firm A and Firm B have debt-total asset ratios of 36% and 26% and returns on total assets of 8% and 12%, respectively. What is the return on equity for Firm A and Firm B?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter9: Projecting Financial Statements
Section: Chapter Questions
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Firm A and Firm B have debt-total
asset ratios of 36% and 26% and
returns on total assets of 8% and
12%, respectively. What is the return
on equity for Firm A and Firm B?
Transcribed Image Text:Firm A and Firm B have debt-total asset ratios of 36% and 26% and returns on total assets of 8% and 12%, respectively. What is the return on equity for Firm A and Firm B?
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