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Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $10,000,000 Accounts payable $ 2,000,000 Notes payable (8%) 1,000,000 Bonds (10%)
Pacific Fixtures lists the following accounts as part of its balance sheet.
Total assets $10,000,000
Accounts payable $ 2,000,000
Notes payable (8%) 1,000,000
Bonds (10%) 3,000,000
Common stock at par 1,000,000
Contributed capital in excess of par 500,000
Retained earnings 2,500,000
Total liabilities and stockholders%u2019 equity $10,000,000
Compute the return on stockholders%u2019 equity if the company has sales of $20 million
and the following net profit margin:
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