Answer:
13.69%
Explanation:
Return on Equity = Net Income / Shareholder's Equity
<em>All Computations are in millions</em>
Shareholder's Equity = Common Stock + Retained Earnings
Shareholder's Equity = $2960 +$735
Shareholder's Equity = $3,695
Net Income = $506
Return on Equity = $506 / $3,695
Return on Equity = 13.69 %
Based on the given matrics, the firm with more business risk is Purple Panda.
<h3>Why does Purple Panda have more business risk?</h3>
A company is said to have more business risk if the standard deviation of its expected Net operating profit after tax (NOPAT) is high.
This is because there is a greater variation in the NOPAT which means that a company has a greater risk of making less as well as more returns. Purple Panda has a high NOPAT standard deviation and so is riskier.
Find out more on Business risk at brainly.com/question/713210.
Answer:
price,product, promotion,place