Question
A company has $200,000 in inventory, which represents 20 percent of current assets. Current assets represent 50 percent of total assets. Total debt represents 30
A company has $200,000 in inventory, which represents 20 percent of current assets. Current assets represent 50 percent of total assets. Total debt represents 30 percent of total assets.
What is the stockholders equity?
Given the following financial data: Net income/Sales = 4 percent; Sales/Total assets = 3.5 times; Debt/Total assets = 60 percent.
Compute: a.Return on assets. b. Return on equity.
A firm has a return on assets of 12 percent and a return on equity of 18 percent.
What is the debt-to-total assets ratio?
In the year 2010, the average firm in the S&P 500 Index had a total market value of five times stockholders equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000.
What is the percent return on equity?
What is the percent return on total market value?
Does this appear to be an adequate return on the actual market value of the firm?
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