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Shown below is the liabilities and stockholders' equity section of the balance sheet for Windsor Company and Sheridan Company. Ea has assets totaling $3,998,000. For
Shown below is the liabilities and stockholders' equity section of the balance sheet for Windsor Company and Sheridan Company. Ea has assets totaling $3,998,000. For the year, each company has earned the same income before interest and taxes. At year-end, the market price of Windsor's stock was $101 per share, and Sheridan's was $63.50. (a) Calculate the return on total assets? (Round answers to 2 decimal places, e.g. 16.85\%.) Which company is more profitable in terms of return on total assets? (b) Calculate the return on common stock equity? (Round answers to 2 decimal places, e.g. 16.85\%.) Which company is more profitable in terms of return on common stockholders' equity? (c) Calculate the Net income per share. (Round answers to 2 decimal places, e.g. 6.85.) Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year. (d1) From the point of view of net income, is it advantageous to the stockholders of Windsor Co. to have the long-term debt outstanding? (e) What is the book value per share for each company? (Round answers to 2 decimal places, e.g. 6.85.)
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