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Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 31,200 $ 140,000 Sales 317,000 2,700,000 Total assets

Assume the following data for Cable Corporation and Multi-Media Inc.

Cable Corporation Multi-Media Inc.
Net income $ 31,200 $ 140,000
Sales 317,000 2,700,000
Total assets 402,000 965,000
Total debt 163,000 542,000
Stockholders' equity 239,000 423,000

a-1.

Compute return on stockholders equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)

Return on Stockholders Equity
Cable Corporation %
Multi-Media, Inc. %

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.)

Cable Corporation Multi-Media Inc.
Net income/Sales % %
Net income/Total assets % %
Sales/Total assets times times
Debt/Total assets %

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