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Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598 Exercise 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
(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 Explanation
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Contemporary Engineering Economics 6th Edition by Chan Park
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