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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? | ||||
|
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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