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QUESTION

Front Beam Lighting company has the following rations compared to the industry for 2010.

Front Beam Lighting company has the following rations compared to the industry for 2010. Return on assets front beam lighting 12% and Industry 5%; return of equity front beam lighting 16%; industry 20%. Explain why the return on equity ration is so much less favorable than the retrun on assets ration compared to the industry. No numbers are necessary; a one sentence is required.

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