Front Beam Lighting Company has the following ratios compared to its industry for last year: Explain why
Question:
Front Beam Lighting Company has the following ratios compared to its industry for last year:
Explain why the return-on-equity ratio is so much less favorable than the return-on-assets ratio compared to the industry. No numbers are necessary; a one-sentence answer is all that is required.
Transcribed Image Text:
Return on assets Return on equity Front Beam Lighting 12% 16% Industry 5% 20%
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Related Book For
Foundations Of Financial Management
ISBN: 9781260013917
17th Edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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