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Selected financlal data from the June 30 year-end statements of Safford Company are given below: Total assets at the beginning of the year were $5,400,000;
Selected financlal data from the June 30 year-end statements of Safford Company are given below: Total assets at the beginning of the year were $5,400,000; total stockholders' equlty was $2,700,000. The company's tax rate is 40%. Requlred: 1. Compute the return on total assets. (Round your percentage answer to 1 declmal place (I.e., 0.1234 should be entered as 12.3).) 2 Compute the return on equity. (Round your percentage answer to 1 declmal place (l.e., 0.1234 should be entered as 12.3).) 3. Is financlal leverage positlve or negatlve
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