Relation between return on assets and return on equity

Assignment Help Financial Management

Reference no: EM131313244

If a company's use of debt financing increases, as compared to equity financing, what would you expect to find in terms of a change in return on equity if the company's return on assets remains the same?

If a company has no debt in its balance sheet, what is the relation between the return on assets and the return on equity?

Reference no: EM131313244

Questions Cloud

Performs a simple search and replace in a string : Write a function, using a regular expression, that performs a simple search and replace in a string.

What is the cost of common equity and wacc : Patton paints has a target capital structure of 40% debt and 60% equity with no preferred stock. It'd before tax cost of debt is 12% and marginal tax rate is 40% . The current stock price is $22.50. The last dividend was $2.00 (Do) and is expected to..

Cutco corporation-parent company : CUTCO Corporation, the largest manufacturer and marketer of high-quality kitchen cutlery and accessories in the United States and Canada, celebrated its 60th anniversary in 2009. With the design and manufacture of the highest-quality product as it..

How might researchers ensure that they select a sample : The research question or purpose of the study guides decisions about the research sampling. How might researchers ensure that they select a sample relevant to the research without introducing a bias?

Relation between return on assets and return on equity : If a company has no debt in its balance sheet, what is the relation between the return on assets and the return on equity?

Explain the relationship between ethical leader and follower : Describe the relationship between the ethical leader and the follower. Why is this relationship important for organizations that are attempting to do the right thing?

Franchising versus independent ownership : Write a 250- to 300-word report on franchising versus independent ownership. What are the benefits and disadvantages of each? Be sure to cite your sources in APA format.

Function that counts occurrences of a word in a string : Write the function so that it works with either a String argument or a StringBuilder object.

What is the companys return on equity : If a company has a return on assets of 10% and has a debt-to-assets ratio of 50%, what is the company's return on equity?

User Account

All Pages