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b. If the asset b turnover goes up to 3, w Assume that the profit margin stays liabilities. 17. Assume the following data for
b. If the asset b turnover goes up to 3, w Assume that the profit margin stays liabilities. 17. Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation $ 31,200 Multi-Media Inc. $ 140,000 Net income Sales Total assets Total debt. Stockholders' equity 317,000 2,700,000 402,000 965,000 163,000 542,000 239,000 423,000 a. Compute the return on stockholders' equity for both firms using Ratio 3a. Which firm has the higher return?
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