The return on assets for Espino Corporation is 7.6%. During the same year, Espinos return on common
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The return on assets for Espino Corporation is 7.6%. During the same year, Espino’s return on common stockholders’ equity is 12.8%. What is the explanation for the difference in the two rates?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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The difference between the two rates can be explained by looking at the denominator val...View the full answer
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Related Book For 
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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