Past year both country homes and city construction earned 1, Ask an Expert

Economics

Last year both Country homes and City Construction earned $1 million in Net Income. Both companies have asstes of $10 million. Country generated a return on equity of 11.1% whereas City produced a return on equity of 20.0%.

What can explain the differences in return on equity between the two companies?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9294053

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