Question

Assume the following data for Cable Corporation and Multi-Media Inc.



Compute return on stockholders’ equity for both firms using ratio 3a. Which firm has the higher return?
Compute the following additional ratios for both firms.
Net income/Sales
Net income/Total assets
Sales/Total assets
Debt/Total assets
Discuss the factors from part b that added or detracted from one firm having a higher return on stockholders’ equity than the other firm as computed in parta.


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  • CreatedOctober 14, 2014
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