Firm a and firm b have debttotal asset ratios of 44 percent, Financial Management

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Firm a and firm b have debttotal asset ratios of 44 percent

Firm A and Firm B have debt–total asset ratios of 44 percent and 34 percent and returns on total assets of 8 percent and 14 percent, respectively.

What is the return on equity for Firm A and Firm B? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Firm A Firm B

Return on equity % %

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Financial Management: Firm a and firm b have debttotal asset ratios of 44 percent

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Financial Management: Firm a and firm b have debttotal asset ratios of 44 percent

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