Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. this particular company has an roe of 13.25%, but

This particular company has an ROE of 13.25%, but an ROA of 1.47%. It has 75.5%...

50.1K

Verified Solution

Question

Finance

This particular company has an ROE of 13.25%, but an ROA of1.47%. It has 75.5% of its assets in Long-term Investments, andmost of the rest is in Cash and Cash Equivalents. On theLiabilities side, Current Liabilities almost match Long-termInvestments. It has an Equity Multiplier of 9.15. This company isa/an:

Commercial Bank

Savings & Loan

Investment Bank

Insurance Company

Investment Company

Answer & Explanation Solved by verified expert
4.3 Ratings (539 Votes)
The ROE is 1325 but ROA is only 147 This indicates that assets are much higher than equity Equity multiplier total assets equity The equity multiplier of 915 indicates that    See Answer
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

Transcribed Image Text

This particular company has an ROE of 13.25%, but an ROA of1.47%. It has 75.5% of its assets in Long-term Investments, andmost of the rest is in Cash and Cash Equivalents. On theLiabilities side, Current Liabilities almost match Long-termInvestments. It has an Equity Multiplier of 9.15. This company isa/an:Commercial BankSavings & LoanInvestment BankInsurance CompanyInvestment Company

Other questions asked by students

Q

Problem 4.26a Draw all possible structure(s) and give the IUPAC systematic name(s) of an alkane or...

Chemistry
Q

In response to the coronavirus the federal government is borrowing HUGE amounts of money. By the time...

Economics
Q

Graph all vertical and horizontal asymptotes of the function. f(x)=-4x+11/-2x+7

Basic Math
Q

2 Find the directional derivative of the function f x y 2xy 3y2 at Po...

Calculus
Q

Metric System The following scorecard shows the distance of a golf course Determine the distance...

Calculus
Q

Part 5: Forecast of EPS Determine the latest quarterly reporting that company provided. When will...

Accounting
Q

QUESTION 1 Dividend payments are categorized as: cash flow from operating activities. cash flow from...

Accounting
Q

The information that follows relates to equipment owned by Buffalo Limited at December 31, 2020...

Accounting
Q

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data...

Accounting
Q

Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses...

Accounting
Q

I only need A1 current year. Thank you! Technology firms, pharmaceutical firms, oil and...

Accounting
Q

Given the following cash flows for Project M: C0 = -1,000, C1 = +200, C2...

Finance