Which firm has the greater return on equity
Problem
Firm A and Firm B have total debt to asset ratios of 40% and 30%, respectively, and return on total assets of 12% and 15%, respectively. Which firm has the greater return on equity?
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Firm A and Firm B have total debt to asset ratios of 40% and 30%, respectively, and return on total assets of 12%. Which firm has the greater return on equity?
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