Financial Leverage

Following are data from Nicole Company and Dana Company for the current year:

Nicole Dana

Net income $$93,500$ $$185,000$

Interest expense $20,00022,600$

Total assets, beginning of year $817,2001,992,960$

Total assets, end of year $998,8002,159,040$

Stockholders' equity, beginning of year $561,0001,271,875$

Stockholders' equity, end of year $607,7501,618,750$

Round percentages to one decimal place. $($Example: $0\mathrm{.}11567=11\mathrm{.}6\%)$

a$.$ Compute the following ratios for Nicole and Dana Companies at the end of the year. $($Ignore income taxes.$)$

Nicole Dana

$1.$ Return on assets Answer

$\%$ Answer

$\%$

$2.$ Return on equity Answer

$\%$ Answer

$\%$