Ranier Parts Company has a return on assets of 12% and a return on common stockholders' equity of 15%. What causes the difference in the two returns?
The return on assets considers the investment by creditors and all stockholders. The return on common stockholders' equity provides a return on the investment by common stockholders only. Because most companies have total assets that exceed common stockholders' equity, the return on assets will be lower.
Business
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When an offer is made, the offeree may make a counteroffer
Indicate whether the statement is true or false
Business
Which of the following is an exception among important factors that a potential buyer should investigate?
A) Lease agreements B) HR policy C) Accounts receivable D) Business records
Business