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Financial Leverage Following are data from Nicole Company and Dana Company for the current year: Nicole Dana Net income Interest expense Total assets, beginning
Financial Leverage Following are data from Nicole Company and Dana Company for the current year: Nicole Dana Net income Interest expense Total assets, beginning of year $93,500 $185,000 20,000 22,600 817,200 1,992,960 998,800 2,159,040 Stockholders' equity, beginning of year 561,000 1,271,875 Total assets, end of year Stockholders' equity, end of year 607,750 1,618,750 Round percentages to one decimal place. (Example: 0.11567 = 11.6%) a. Compute the following ratios for Nicole and Dana Companies at the end of the year. (Ignore income taxes.) 1. Return on assets 2. Return on equity Nicole Dana 96 96 %6 96
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