What is the explanation for the difference in the two rates

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Reference no: EM131837215

Question: 1. The return on assets for Ayala Corporation is 7.6%. During the same year, Ayala's return on common stockholders' equity is 12.8%. What is the explanation for the difference in the two rates?

2. Which two ratios do you think should be of greatest interest in each of the following cases?

(a) A pension fund considering the purchase of 20-year bonds.

(b) A bank contemplating a short-term loan.

Reference no: EM131837215

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