Calculation of return on equity

Assignment Help Macroeconomics

Reference no: EM1368746

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?

Reference no: EM1368746

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