Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 3, Problem 8CQ

Comparing ROE and ROA Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why?

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Observe the net income for both companies. Which company is more profitable? Which company is more profitable using this type of analysis?
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