need 2 responses please (comments)
February 26, 2021Short Case
February 26, 2021Under what conditions would a firm’s return on common equity (ROCE)
Answer/comment on each of the following items:
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’s 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.
4. A firm should always purchase inventory and supplies on credit rather than paying cash. Correct?