Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 13

The data in Table are available for two companies, A and B, all stated in millions.
(a) Calculate each company's return on equity (ROE) and return on total assets (ROA).
(b) Why Company B's ROE so much higher than Company A's Does this mean Company B is a better company Why or why not
(c) If Companies A and B were combined (merged), what would be the impact on the results on ROE Under what conditions would such a combination make sense
TABLE 1
TABLE 2
TABLE 3