Question: The following data show five items from the financial statements of three companies for a recent year (amounts in millions): Company A Company B Company

The following data show five items from the financial statements of three companies for a recent year (amounts in millions):

Company A Company B Company C
For the Year
Revenues $8,856 $9,300 $11,814
Income before interest and related taxes1 605 1,028 670
Net income to common shareholders2 486 954 478
Average during the Year
Total assets 9,069 6,816 7,104
Common shareholders' equity 2,790 3,480 2,868

1Net income + Interest expense (1 tax rate)

2Net income Preferred stock dividends

Required:

A. Compute the rate of return on assets for each company. Carry out all computations to four decimal places. Then, convert the final answer to a percent. For example: 825/1630 =.5062 is carried out to four decimal places and then entered as 50.62. Do not enter a percentage sign in your answer.

Return on Assets
Company A: %
Company B: %
Company C: %

Separate the rate of return on assets into the return on sales and the asset turnover ratio. Carry out all computations to four decimal places. For return on sales, convert the final answer to a percent. For example: 825/1630 =.5062 is carried out to four decimal places and then entered as 50.62. For asset turnover, round your answer to two decimal places. For example: .51.

Return on Sales Asset Turnover Ratio
Company A % times
Company B % times
Company C % times

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