Question
Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation: Net income- $35,800 Sales- 346,000 Total assets- 449,000 Total debt- 201,000 Stockholders equity-
Assume the following data for Cable Corporation and Multi-Media Inc.
Cable Corporation:
Net income- $35,800
Sales- 346,000
Total assets- 449,000
Total debt- 201,000
Stockholders equity- 248,000
Multi- Media Inc.
Net Income- $128,000
Sales- 2,700,000
Total assets- 929,000
Total debt- 523,000
Stockholders equity- 406,000
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A) Question: Compute return on stockholders equity for both firms.
B) Compute the following additional ratios for both firms.
Net income/sales
Net income/total assets
Sales/total assets
debt/total assets
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
