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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?

  • Multi-Media Inc.

  • Cable Corporation

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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