Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
3rd Edition
ISBN: 9780133507676
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 2, Problem 27P
Summary Introduction

Operating returns: Operating returns are the ratios which are used by the financial analysts to evaluate the return of the firm on investment. This is done by comparing the income to its investment using some ratios like return on equity and return on assets. Return on equity is the ratio of net income to book value of equity. Return on assets is the ratio of net income and interest to the book value of the assets of the firm.

To determine:

Return on equity and return on assets.

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Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)

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