Question: eBook Using the data in the following table for a number of firms in the same industry, do the following: Firm (in Millions of Dollars)

eBook

Using the data in the following table for a number of firms in the same industry, do the following:

Firm
(in Millions of Dollars) A B C D
Sales $25 $25 $30 $25
Net income after tax 2.75 3.25 1.25 2.00
Total assets 10.0 20.0 14.0 18.5
Stockholders' equity 10.0 13.0 7.0 7.0
  1. Compute the total asset turnover, the net profit margin, the equity multiplier, and the return on equity for each firm. Round your answers to two decimal places.
    A B C D
    Total Asset Turnover x x x x
    Net Profit Margin
    Equity Multiplier x x x x
    Return on Equity
  2. Evaluate each firms performance by comparing the firms with one another. Which firm has the lowest total asset turnover value? -Select-Firm AFirm BFirm CFirm D Which firm has the lowest net profit margin value? -Select-Firm AFirm BFirm CFirm D Which firm has the lowest equity multiplier value? -Select-Firm AFirm BFirm CFirm D\ Which firm has the lowest return on equity value? -Select-Firm AFirm BFirm CFirm D

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