Short Answer
Below are data taken from the financial statements of two companies in the same industry: Instructions
a) Calculate the ROA and ROE for both companies. Assume total assets and equity have not changed from the previous year.
b) As an equity investor, which company would you prefer to invest in?
Correct Answer:

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Viola Tuba
ROA: 75,000 ÷ 600,000 = 12.5...View Answer
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Correct Answer:
Verified
ROA: 75,000 ÷ 600,000 = 12.5...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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