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Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 39,000 $ 171,000 Sales 381,000 2,810,000 Total assets
Assume the following data for Cable Corporation and Multi-Media Inc.
Cable Corporation | Multi-Media Inc. | |||||
Net income | $ | 39,000 | $ | 171,000 | ||
Sales | 381,000 | 2,810,000 | ||||
Total assets | 412,000 | 912,000 | ||||
Total debt | 189,000 | 499,000 | ||||
Stockholders' equity | 223,000 | 413,000 | ||||
a-1. Compute return on stockholders equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)
a-2. Which firm has the higher return?
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Cable Corporation
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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.)
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