Question
The Phoenix Company has the following results: Net Sales $7,000,000 Net Total Assets $5,000,000 Depreciation$200,000 Net Income $500,000 Long-Term Debt$2,500,000 Equity$1,800,000 Dividends $180,000 Compute Phoenix's
The Phoenix Company has the following results:
Net Sales $7,000,000
Net Total Assets $5,000,000
Depreciation$200,000
Net Income $500,000
Long-Term Debt$2,500,000
Equity$1,800,000
Dividends $180,000
Compute Phoenix's ROE directly. Confirm this using the three components (ratios) combined in your computation.
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
