Unformatted text preview: ( how much of the return on equity is a result of debt. Is equal to assets divided by shareholder equity. Ibm has lower shareholder equity and more assets, therefore they have a higher equity multiplier, which makes there return on equity higher, due to them having more financial leverage. A larger portion of IBMs return on equity is a result of debt than Hp....
View Full Document
This note was uploaded on 09/08/2010 for the course BUS 173B at San Jose State.