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Problem 3 - 1 6 ( Static ) DuPont system of analysis [ LO 3 - 3 ] Jerry Rice and Grain Stores has $
Problem Static DuPont system of analysis LO
Jerry Rice and Grain Stores has $ in yearly sales. The firm earns percent on each dollar of sales and turns over its assets times per year. It has $ in current liabilities and $ in longterm liabilities.
a What is its return on stockholders' equity?
Note: Do not round intermediate calculations. Input your answer as a percent rounded to decimal places.
Return on stockholders' equity
b If the asset base remains the same as computed in part but total asset turnover goes up to what will be the new return on stockholders' equity? Assume that the profit margin stays the same as do current and longterm liabilities.
Note: Do not round intermediate calculations. Input your answer as a percent rounded to decimal places.
New return on stockholders' equity
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