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  • leoislion75 leoislion75 Jun 2, 2011 3:32 PM Flag

    Peristentone (Question for you) <- come in

    You are a text-book person.. You need to think out=of-box and use some common sense. Don't comment on anything..just answer the question below:

    2 companies..pick the better one (NO price valuation concern..just which is better)

    A) Leo's Company (Poor ROE, High Income/Cap)

    1)Got 50 billion cash(capital)
    2)I spent $10 dollar on stuff and make 1 billion (super lottery business xP whocares..for the sake of example)

    RESULT = ROE (2%), Income/Cap = 100000000:1
    Note: Yes, I put rest of 50billion under my pillow (yes i am so INEFFICIENCY..I can't find other ways to generate money like lottery YET)

    B) Your company (High ROE, Low Income/Cap)

    1) Got 5 billion cash (capital)
    2) You spent 5 billion on stuff (1 year later it will have no resale value) and ONLY make 1 billion

    RESULT = ROE (20%), Income/Cap = 1:5

    Question: Which is the better company..A or B?

    Answer: supply your answer here _______________

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