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A company had on average 100,000 in assets in 200X. The debt ratio was 80%. The company had 36,000 of total revenues and the efficiency
A company had on average 100,000 in assets in 200X. The debt ratio was 80%. The company had 36,000 of total revenues and the efficiency ratio was 1.8. Assume that the cost of capital is 15%. a) What was the return on assets, the return on equity, and residual income? b) What was the asset gearing ratio and profit margin?
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