Question
You are given the following financial data for ABC company Total Assets $ 5,000,000 Total Liabilities $ 4,000,000 Net Profit Margin 20 % Total Asset
You are given the following financial data for ABC company
Total Assets $ 5,000,000
Total Liabilities $ 4,000,000
Net Profit Margin 20 %
Total Asset Turnover 0.6 times
You are also given the following industry averages:
Total asset turnover 2 times
Net Profit Margin 6 %
Debt ratio 40%
(1) Compute and complete the following ratios in the table. Show your calculations
ABC Company
Industry Average
Return on Assets (ROA)
Financial Leverage Multiplier
Return on Equity (ROE)
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Intermediate Financial Management
Authors: Eugene BrighamPhillip Daves
1st Edition
0324594712, 9780324594713
