Firm abc and firm xyz each have the same amount of assets, Ask an Expert

Finance

Firm ABC and Firm XYZ each have the same amount of assets and net income, but Firm ABC’s assets are financed entirely with equity and Firm XYZ is financed half with debt. Which one has the higher return on equity?

There is not enough information to tell.

Firm XYZ

Firm ABC

Return on equity will be the same.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92429214

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