Question: Following is financial information for three ventures: A. Calculate the ROA for each firm. B. Which venture is indicative of a strong entrepreneurial venture opportunity?
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A. Calculate the ROA for each firm.
B. Which venture is indicative of a strong entrepreneurial venture opportunity?
C. Which venture seems to be more of a commodity-type business?
D. How would you place these three ventures on a graph similar to Figure 2.10?
E. Use the information in Figure 2.9 relating to pricing/profitability and score each venture in terms of potentialattractiveness.
VENTURE XX VENTURE YY VENTURE ZZ After-tax profit margins Asset tumover 5% 2.0 times 25% 3.0 times 15% 1.0 times
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a Venture XX 5 x 20 10 Venture YY 15 x 10 15 Venture ZZ 25 x 30 75 b Venture ZZ seems to represent ... View full answer
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