Question
Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $9,000,000 Accounts payable $ 1,700,000 Notes payable (8%) 1,000,000 Bonds (10%)
Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $9,000,000 Accounts payable $ 1,700,000 Notes payable (8%) 1,000,000 Bonds (10%) 3,300,000 Common stock at par 900,000 Contributed capital in excess of par 500,000 Retained earnings 1,600,000 Total liabilities and stockholders equity $9,000,000 Compute the return on stockholders equity if the company has sales of $18 million and the following net profit margin: 5 percent. Round your answer to one decimal place. 9 percent. Round your answer to one decimal place.
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