Question: Que 45 60 Below are data taken from the financial statements of two companies in the same industry Vols Inc Tube.co Total assets 5600,000 $600,000
Que 45 60 Below are data taken from the financial statements of two companies in the same industry Vols Inc Tube.co Total assets 5600,000 $600,000 Total lates 0 200,000 Total common equity 600,000 400,000 Income before interest & taxes 100,000 100,000 Taxes 25,000 20,000 Interest rate on liabilities 10% 10% Instructions a) Calculate the ROA and ROE for both companies. Assume total assets and equity have not changed from the previous year. b) As an equity investor, which company would you prefer to invest in? Explain your choice 2 A- B I MacBook Air F2 20 000 F3 000 F4 FS 11 77 FS $ # 3
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