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    Return on Common Equity vs Total Assets

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    Would you anticipate that a firm's Return on Common Equity would be smaller or larger than that same firm's Return on Total Assets?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:32 pm ad1c9bdddf
    https://brainmass.com/business/accounting/return-on-common-equity-vs-total-assets-142419

    Solution Preview

    Return on common stockholders' equity

    = Net Income -Preference dividend / Average Equity

    Return on Total ...

    Solution Summary

    The solution compares return on common equity and total assets for small and large firms.

    $2.19

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