Explain why the return-on-equity ratio is so much less

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Acme Transportation Company has the following ratios compared to its industry for 2009.

Acme Transportation Industry
Return on assets.................... 9% 6%
Return on equity..................... 12% 24%
Explain why the return-on-equity ratio is so much less favorable than the return-on-assets ratio compared to the industry. No numbers are necessary; a one-sentence answer is all that is required.*

Reference no: EM13602420

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