Question: Assume the following data for Interactive Technology and Silicon Software. a. Compute return on shareholders' equity for both firms. Which firm has the higher return?

Assume the following data for Interactive Technology and Silicon Software.

Silicon Software (SS) Interactive Technology (IT) $ 15,000 Net income. Sales .... Total assets.. Total debt .... Shareho

a. Compute return on shareholders' equity for both firms. Which firm has the higher return?
b. Compute the following ratios for both firms:
Net income/sales
Net income/total assets
Sales/total assets
Debt/total assets
c. Discuss the factors that added or detracted from each firm's return on shareholders' equity.

Silicon Software (SS) Interactive Technology (IT) $ 15,000 Net income. Sales .... Total assets.. Total debt .... Shareholders' equity. 50,000 150,000 1,000,000 160,000 400,000 60,000 100,000 240,000 160,000

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