CH.13 #5

Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets at the beginning of the year were $4, 900,000; total stockholders' equity was $2, 400,000. The company's tax rate is 35%. Required: Compute the return on total assets. Return on total assets % Compute the return on equity. Return on equity % Is financial leverage positive or negative? Positive Negative