Firm A and Firm B have debt-total asset ratios of 25 percent and 40 percent and returns
Question:
Firm A and Firm B have debt-total asset ratios of 25 percent and 40 percent and returns on total assets of 8 percent and 7 percent, respectively. Which firm has a greater return on equity?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
Input area Firm A DT...View the full answer
Answered By
Atuga Nichasius
I am a Highly skilled Online Tutor has a Bachelor’s Degree in Engineering as well as seven years of experience tutoring students in high school, bachelors and post graduate levels. I have a solid understanding of all learning styles as well as using asynchronous online platforms for tutoring needs. I individualise tutoring for students according to content tutoring needs assessments.
My strengths include good understanding of all teaching methods and learning styles and I am able to convey material to students in an easy to understand manner. I can also assists students with homework questions and test preparation strategies and I am able to help students in math, gre, business , and statistics
I consider myself to have excellent interpersonal and assessment skills with strong teaching presentation verbal and written communication
I love tutoring. I love doing it. I find it intrinsically satisfying to see the light come on in a student's eyes.
My first math lesson that I taught was when I was 5. My neighbor, still in diapers, kept skipping 4 when counting from 1 to 10. I worked with him until he could get all 10 numbers in a row, and match them up with his fingers.
My students drastically improve under my tutelage, generally seeing a two grade level improvement (F to C, C to A, for example), and all of them get a much clearer understanding!
I am committed to helping my students get the top grades no matter the cost. I will take extra hours with you, repeat myself a thousand times if I have to and guide you to the best of my ability until you understand the concept that I'm teaching you.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Firm A and Firm B have debt total asset ratios of 44 percent and 34 percent and returns on total assets of 8 percent and 14 percent, respectively. What is the return on equity for Firm A and Firm B?
-
Firm A and Firm B have debt-total asset ratios of 55% and 40% and returns on total assets of 8% and 11%, respectively. Which firm has a greater return on equity?
-
Firm A and firm B have debt-total asset ratios of 35% and 30% and returns on total assets of 12% and 11%, respectively. Which firm has a greater return on equity?
-
The following report was prepared for evaluating the performance of the plant manager of Miss-Take Inc. Evaluate and correct thisreport. Miss-Take Inc. Manufacturing Costs For the Quarter Ended March...
-
Based upon the data presented in Exercise 2-4, prepare an unadjusted trial balance, listing the accounts in their proper order.
-
a. Why might a one-sided test be appropriate for the preceding problem? b. Identify the null and research hypotheses for a one-sided test, using both words and mathematical symbols. c. Perform a...
-
Suppose that a one-way analysis of variance involves four treatments but that a different number of observations (e.g., $n_{i}$ ) has been taken under each treatment. Assuming that $n_{1}=3, n_{2}=2,...
-
During 2010, Minh Corporation had a net income of $144,000. Included on its income statement were depreciation expense of $16,000 and amortization expenses of $1,800. During the year, Accounts...
-
The balance sheet for Carla Vista Co. is as follows: Carla Vista Co. Balance Sheet December 31, 2022 Cash $ 24,000 Accounts payable $ 3,800 Accounts receivable 22,700 Salaries and wages payable 2,800...
-
The measured and corrected cylinder pressures around IVC (210CA) are given in the table. Find out the reference pressure ppeg (the manifold air pressure) at IVC, using 5 point half-width (n=10) for...
-
Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group...
-
Prince Albert Canning PLC had a net loss of 26,832 on sales of 294,813. What was the company's profit margin? Does the fact that these figures are quoted in a foreign currency make any difference?...
-
Firms increasing awareness of their impacts on the environment has led to the establishment of companies that specialize in all aspects of managing the environmental effects of operations. Search the...
-
1 M AC AB Determine: LA, QB. FAC Griven: MA = MB = 9kg CA = B = 0.25m KA K = KB = 0.2m Me= 3kg rc = Oolm Ke= 0.075m M. 5 Nm
-
Oil used to lubricate the surfaces of a rotating bearing behaves such that viscous dissipation is not negligible. The properties of the oil are assumed to be constant. The problem can be modelled as...
-
7. Which one of the following is true about age-hardenable 2000-series aluminium alloys? A. The increase in strength associated with the ageing heat-treatment is due to diffusion of the alloy element...
-
The concentrated force applied at the free end of the cantilever is 400 kN. What is the bending stress at point A located at 100 mm from the bottom at section a-a? -0.5 m- a a 400 KN -0.5 m- 11 100...
-
An industrial operation is working with 70 % capacity. The annual variable production cost is 140 000 $. Total annual fixed cost is 100 000 $. If the unit selling price of the product is 20 $ and...
-
What do you think are the most serious weaknesses in the interviewing process as conducted at many small businesses? How could these be remedied?
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
M&M Propositions how would you answer in the following debate? Q: Isnt it true that the riskiness of a firms equity will rise if the firm increases its use of debt financing? A: Yes, thats the...
-
Financial Leverage why is the use of debt financing referred to as financial leverage?
-
Homemade Leverage what is homemade leverage?
-
Lake Incorporated and the River, Incorporated reported net incomes of $205,000 and $164,000, respectively, for the most recent fiscal year. Both companies had 41,000 shares of common stock issued and...
-
What effect Eventually, BREXIT will make on EU? How it will benefit UK? What will be the possible outcome?
-
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land Expenses to...
Study smarter with the SolutionInn App