please see the following financial information for Company A and B respectively. Company ACompany BTotal Assets250 million300 millionDebt (10%)50 million180 millionEquity200 million120 million Calculate ROE of Company A and Company B when ROA for both of them is12% and 6% respectively.

Company A: ROA=12%Net IncomeTotal Assets=12%Net Income250 million=12%Net Income=12%×250 million=30…

Answered: please see the following financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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	*Company A*	*Company B*
*Total Assets*	*250 million*	*300 million*
*Debt (10%)*	*50 million*	*180 million*
*Equity*	*200 million*	*120 million*

please see the following financial information for Company A and B respectively. Company A Company B Total Assets 250 million 300 million Debt (10%) 50 million 180 million Equity 200 million 120 million Calculate ROE of Company A and Company B when ROA for both of them is12% and 6% respectively.