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Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 32,400 $ 127,000 Sales 377,000 2,830,000 Total assets
Assume the following data for Cable Corporation and Multi-Media Inc.
Cable Corporation | Multi-Media Inc. | |||||
Net income | $ | 32,400 | $ | 127,000 | ||
Sales | 377,000 | 2,830,000 | ||||
Total assets | 408,000 | 925,000 | ||||
Total debt | 195,000 | 547,000 | ||||
Stockholders' equity | 213,000 | 378,000 | ||||
a-1. Compute return on stockholders equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)
Return on Stockholder's equity |
Cable Corporation | % | |
Multi-Media Inc. | % |
a-2. Which firm has the higher return?
Cable Corporation | |
Multi-Media Inc. |
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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