The table that follows summarises the financial performances of four companies inthe year 2020. The information in this table suggests that [ Select ] generated thehighest return-on-equity.ProfitAssetTotalTotalMargin Turnover(%)Equity(times) ($million) ($million)CompanyAssetsA12.00.512,5104,500В5.61.66,8903,250C7.01.37,7914,900D10.00.810,3687,200

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by…

The table that follows summarises the financial performances of fo the year 2020. The information in this table suggests that [ Select highest return-on-equity. Profit Asset Total Total Margin Turnover (%) Company Equity (times) ($million) ($million) Assets A 12.0 0.5 12,510 4,500 В 5.6 1.6 6,890 3,250 C 7.0 1.3 7,791 4,900 D 10.0 10.368 7.200

The table that follows summarises the financial performances of fo the year 2020. The information in this table suggests that [ Select highest return-on-equity. Profit Asset Total Total Margin Turnover (%) Company Equity (times) ($million) ($million) Assets A 12.0 0.5 12,510 4,500 В 5.6 1.6 6,890 3,250 C 7.0 1.3 7,791 4,900 D 10.0 10.368 7.200

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 32CTQ: Explain why a financial investor in stocks cannot earn high capital gains simply by buying companies...

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Explain why a financial investor in stocks cannot earn high capital gains simply by buying companies with a demonstrated record of high profits.
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