Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows: ROI= Operating income ÷ Average total assets To discuss: the reason for difference between return on total assets and return on common stockholder’s equity .

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Answer 1

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Chapter 13, Problem 12DQ

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Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

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Why would a company’s return on total assets be different from its return on common stockholders’ equity?

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whats the return on assets? whats the return on common stockholders equity?

Answer 2

Question

Chapter 13, Problem 12DQ

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

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Answer 3

Question

Chapter 13, Problem 12DQ

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

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Answer 4

Question

Chapter 13, Problem 12DQ

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

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Answer 5

Chapter 13, Problem 12DQ

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

Answer 6

Chapter 13, Problem 12DQ

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

Answer 7

Chapter 13, Problem 12DQ

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

Answer 8

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Answer 9

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Answer 11

Ch. 13 - Explain the difference between financial reporting...Ch. 13 - Prob. 2DQ Ch. 13 - Prob. 3DQ Ch. 13 - Prob. 4DQ Ch. 13 - Prob. 5DQ Ch. 13 - Prob. 6DQ Ch. 13 - Prob. 7DQ Ch. 13 - Prob. 8DQ Ch. 13 - Prob. 9DQ Ch. 13 - Prob. 10DQ

Solution Summary: The author explains that Return on Assets/Investment is a profitability ratio that represents the percentage return on the investment made by dividing the Net Income by the Average total assets.

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