CEC Entertainment, which owns the Chuck E. Cheese pizza chain, has the following selected data ($ in
Question:
Based on these amounts, calculate the following ratios for 2008:
1. Debt to equity ratio.
2. Return on assets ratio.
3. Return on equity ratio.
4. Times interest earned ratio.
Why is the return on equity higher than the return on assets?
CEC ENTERTAINMENT CEC ENTERTAINMENT Selected Income Statement Data Selected Balance Sheet Data 2008 2007 $747 $738 618 520 Total stockholders' equity 129 218 $815 17 34 56 Total assets Total liabilities Tax expense Net income
Step by Step Answer:
1 Total Liabilities Stockholders Equity Debt to Eq...View the full answer
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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