Explain how this can be due to the financial assets

Reference no: EM131491064

Question: A firm has financial assets invested in short-term government bonds but has no financial obligations.

a. Suppose RNOA exceeds ROCE. Explain how this can be due to the financial assets.

b. Suppose now that ROCE exceeds RNOA. Explain how this can happen to this firm.

c. Apple Inc. has no financial obligations but had $68.8 billion of financial assets in March 2011. Does it belong in case (a) or (b)?

Reference no: EM131491064

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