Under what conditions would a firm rona is equal to rooa

Reference no: EM131490927

Question: 1. Under what conditions would a firm's return on common equity (ROCE) be equal to its return on net operating assets (RNOA)?

2. Under what conditions would a firm return on net operating assets (RNOA) be equal to its return on operating assets (ROOA)?

3. Explain why borrowing might lever up the return on common equity.

Reference no: EM131490927

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