Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. company xyz and company abc are similarly levered.

Company xyz and company abc are similarly levered. But xyz has a larger ROE than...

50.1K

Verified Solution

Question

Finance

Company xyz and company abc are similarly levered. But xyz has a larger ROE than abc. Strangely though, abc has a better profit margin than xyz. What is yhe explanation of that?
That company xyz has a better asset use efficiency?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. It is April 2019. A US company needs to borrow $100,000,000 for three months starting...

Finance
Q

The quality-control manager at a compact fluorescent light bulb (CFL) factory needs to determine whether the...

Basic Math
Q

(a) What is the magnitude of the tangential acceleration of a bug on the rim of...

Physics
Q

this program is to be done in c language. Using Pointers Create a program pointerTester.c to...

Electrical Engineering
Q

Towing Company manufactures and sells a single product for $40 per unit. Variable costs are $30...

Accounting
Q

Read the following sentences and answer the question that follows.After lunch, Juliet sat with Jane...

Biology
Q

Give an example of how an animal that lives a far distance away from a...

Biology
Q

A sphere fits inside a cube with the sphere's diameter equal to the width of...

Basic Math
Q

Use the Alternating Series Remainder Theorem to determine the smallest number of terms required to...

Calculus
Q

Exponential Functions Question 8 What function is represented in the graph Select one Oy 4...

Algebra
Q

Graph y = sin(x). Then give thedomain in the interval form:range in the interval form:What...

Algebra
Q

Suppose that the price p for a certain commodity declines toward $3 as the quantity...

Accounting