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14) Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 39,900 $ 112,000 Sales 310,000 2,550,000 Total
14)
Assume the following data for Cable Corporation and Multi-Media Inc. |
Cable Corporation | Multi-Media Inc. | |||||
Net income | $ | 39,900 | $ | 112,000 | ||
Sales | 310,000 | 2,550,000 | ||||
Total assets | 480,000 | 937,000 | ||||
Total debt | 187,000 | 538,000 | ||||
Stockholders' equity | 293,000 | 399,000 |
a-1. | Compute return on stockholders equity for both firms.(Input your answers as a percent rounded to 2 decimal places.) |
Return on Stockholders Equity | |
Cable Corporation | % |
Multi-Media, Inc. | % |
a-2. | Which firm has the higher return? | ||
|
b. | Compute the following additional ratios for both firms.(Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimal places. Round your Sales/Total assets answers to 2 decimal places.) |
Cable Corporation | Multi-Media Inc. | |
Net income/Sales | % | % |
Net income/Total assets | % | % |
Sales/Total assets | times | times |
Debt/Total assets | % | % |
|
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