Why is the return on equity higher than the return on assets

Reference no: EM131521668

Question: CEC Entertainment,which owns the Chuck E. Cheese pizza chain, has the following selected data ($ in millions):

Based on these amounts, calculate the following ratios for 2008:

1. Debt to equity ratio.

2. Return on assets ratio.

3. Return on equity ratio.

4. Times interest earned ratio.

Why is the return on equity higher than the return on assets?

Reference no: EM131521668

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