Omni Technology Holding Company has the following three affiliates: a. Which affiliate has the highest return on
Question:
Omni Technology Holding Company has the following three affiliates:
a. Which affiliate has the highest return on sales?
b. Which affiliate has the lowest return on assets?
c. Which affiliate has the highest total asset turnover?
d. Which affiliate has the highest return on stockholders’ equity?
e. Which affiliate has the highest debt ratio? (Assets minus stockholders’ equity equals debt.)
f. Returning to part b, explain why the software affiliate has the highest return on total assets.
g. Returning to part d, explain why the personal computer affiliate has a higher return on stockholders’ equity than theforeign operations affiliate, even though it has a lower return on total assets.
Step by Step Answer:
Foundations Of Financial Management
ISBN: 9781260013917
17th Edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen