Assume the following data for Interactive Technology and Silicon Software. a. Compute return on shareholders' equity for

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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.

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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