Return on common shareholder equity

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Reference no: EM131949771

1. One important difference between return on assets (ROA) and return on common shareholder's equity (ROCE) is

(A) ROCE does not differentiate based on how a company finances its assets; ROA does.

(B) ROCE does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROA does.

(D) ROA does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROCE does.

2. A saving account offers a nominal rate of 14.54%. If you open that account with an initial deposit of $1,800 and each month for now on you will save $219. What is the balance of the account after 11 years?

3. If you put up $51,000 today in exchange for 6.25 percent, 15 years annuity, what will the annual cash flow be?

Reference no: EM131949771

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