Question
Cream of Tomato Company has the following data available. Net income = $250,000 Sales = $2.5 million Total asset turnover = 3 Equity multiplier =
Cream of Tomato Company has the following data available.
Net income = $250,000
Sales = $2.5 million
Total asset turnover = 3
Equity multiplier = 2.5
Cream of Tomato does not have any preferred stock outstanding. Note that the equity multiplier is defined as total assets to equity. Calculate the return on assets and return on equity for Cream of Tomato.
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
