Question

Firm A and Firm B have debt-total asset ratios of 37 percent and 27 percent and returns on total assets of 7 percent and 10 percent, respectively. What is the return on equity for Firm A and Firm B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) Firm A Firm B

Answer 1

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