Omni Technology Holding Company has the following three affiliates: a. Which affiliate has the highest return on

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Omni Technology Holding Company has the following three affiliates:


a. Which affiliate has the highest return on sales?

b. Which affiliate has the lowest return on assets?

c. Which affiliate has the highest total asset turnover?

d. Which affiliate has the highest return on stockholders’ equity?

e. Which affiliate has the highest debt ratio? (Assets minus stockholders’ equity equals debt.)

f. Returning to part b, explain why the software affiliate has the highest return on total assets.

g. Returning to part d, explain why the personal computer affiliate has a higher return on stockholders’ equity than theforeign operations affiliate, even though it has a lower return on total assets.

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Related Book For  book-img-for-question

Foundations Of Financial Management

ISBN: 9781260013917

17th Edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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