Company A has a return on assets of 8% but a return on common shareholders equity of 15%. Company B.
Company A has a return on assets of 8% but a return on common shareholders equity of 15%. Company B has the same return on assets of 8% but a return on common shareholders equity of 9%. How can both of these companies, neither of which has any preferred shares, have the same return on assets but a different return on common shareholders equity?