Solved

Omni Shades and Raindew Are Two Very Similar Businesses in All

Question 5

True/False

Omni Shades and Raindew are two very similar businesses in all aspects except that Omni Shades relies mainly on equity financing, while Raindew relies heavily on debt financing. This year both firms have enjoyed strong growth in net income. This is likely to result in a higher return on equity for Omni Shades than for Raindew.

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