Total assets at the beginning of the year were $$3,000,000$; total shareholders equity was $$2,200,000.$ There has been no change in the preferred shares during the year. The companys tax rate is $30\%.$

Required:

 

 $1.$ Compute the return on total assets. $$$\mathrm{}$$$ 

 

$2.$ Compute the return on common shareholders equity.

Answer rating: 100% (QA)

1 Return on Total Assets ROTA ROTA To compute ROTA we need to know the Net Income and Average Total ... View the full answer