Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of total debt. It reports net
Question:
Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of total debt. It reports net income of $200,000.
a. What is its ROA?
b. What is the return on shareholders' equity?
c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin?
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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