Assuming the following information, calculate the company's return on assets (ROA) and return on equity (ROE), and
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Question:
Assuming the following information, calculate the company's return on assets (ROA) and return on equity (ROE), and interpret the results:
- Net Income: $150,000
- Total Assets: $1,500,000
- Total Equity: $750,000
a) What is the company's return on assets? b) What is the company's return on equity? c) How would you interpret the results of the ratios, and what implications would this have for the company's financial performance?
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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