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Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 30,300 $ 190,000 Sales 387,000 2,460,000 Total assets
Assume the following data for Cable Corporation and Multi-Media Inc.
Cable Corporation | Multi-Media Inc. | |||||
Net income | $ | 30,300 | $ | 190,000 | ||
Sales | 387,000 | 2,460,000 | ||||
Total assets | 479,000 | 986,000 | ||||
Total debt | 245,000 | 474,000 | ||||
Stockholders' equity | 234,000 | 512,000 | ||||
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?
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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