Question
Assume the following data for Cable Corporation and Multi-Media Inc. Wire Corporation multimedia inc. Net Income ps 37,000 ps 149,000 Sales 376,000 2,150,000 total assets
Assume the following data for Cable Corporation and Multi-Media Inc.
| Wire Corporation | multimedia inc. | |||||
| Net Income | ps | 37,000 | ps | 149,000 | ||
| Sales | 376,000 | 2,150,000 | ||||
| total assets | 426,000 | 910,000 | ||||
| Total debt | 248,000 | 484,000 | ||||
| stockholders' equity | 178,000 | 426,000 | ||||
a. Calculate the return on equity of both companies.
b. Calculate the following additional ratios for both companies.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a Return on Equity ROE for both companies can be calculated as ROE Net Income Shareholders ...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
