For firm XYZ in the previous problem, suppose the firm's business risk is defined in terms of $\sigma$(ROA), and $\sigma$(ROA)=19%.Assuming that the debt is default-free, compute $\sigma$(ROE).
&emsp; $\sigma$(ROE)

Question

For firm XYZ in the previous problem, suppose the firm's business risk is defined in terms of $\sigma$(ROA), and $\sigma$(ROA)=19%.Assuming that the debt is default-free, compute  $\sigma$(ROE). 
&emsp; $\sigma$(ROE)

Quizplus · Accepted Answer

The Answer of For firm XYZ in the previous problem, suppose the firm's business risk is defined in terms of $\sigma$(ROA), and $\sigma$(ROA)=19%.Assuming that the debt is default-free, compute  $\sigma$(ROE). 
&emsp; $\sigma$(ROE)

For Firm XYZ in the Previous Problem, Suppose the Firm's σ\sigmaσ

For Firm XYZ in the Previous Problem, Suppose the Firm's $\sigma$