The following data are available for two companies, Apple and Oracle, all stated in thousands of dollars. (a) Calculate each company's return on equity (ROE) and return on asset (ROA)
(b) Which company has performed better in terms of profitability?
(c) If two companies were combined (merged), what would be the impact on the results on ROE? Under what
conditions would such a combination make sense?

Question

The following data are available for two companies, Apple and Oracle, all stated in thousands of dollars.

(a) Calculate each company's return on equity (ROE) and return on asset (ROA)
(b) Which company has performed better in terms of profitability?
(c) If two companies were combined (merged), what would be the impact on the results on ROE? Under what
conditions would such a combination make sense?

Quizplus · Accepted Answer

The Answer is It seems merging improves the shareholders' value.

The Following Data Are Available for Two Companies, Apple and Oracle