Firm A and firm B have debttotal asset ratios of 45% and 35% and returns on total

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Firm A and firm B have debt–total asset ratios of 45% and 35% and returns on total assets of 9% and 12%, respectively. Which firm has a greater return on equity?

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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Mar 13, 2014 07:56 AM

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Firm A and firm B have debttotal asset ratios of 45% and 35% and returns on total

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Fundamentals of corporate finance

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