You purchase $100,000 worth of shares and hold them for a year. At the end of the

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You purchase $100,000 worth of shares and hold them for a year. At the end of the year, the value of your portofolio of shares has increased to $105,000. Assuming a cost of debt of 10% and leverage of 5, what is your ROA and ROE?

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Posted Date: Feb 27, 2019 01:55 AM

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You purchase $100,000 worth of shares and hold them for a year. At the end of the

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We know that ROE Net Income Equity 105000 100000 100000 005 or 5 Financial Leverage ... View the full answer

Accounting Principles

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