The return on equity for MMM corporation is 10% for 2017 and profits aftertaxes are $40,000. Number

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The return on equity for MMM corporation is 10% for 2017 and profits aftertaxes are $40,000. Number of shares outstanding are 100,000 and the marketprice of the share is $8. Total liabilities for the company are $600,000.

a. P calculate the equity capital of the company. Describe the significance of the ratio "return on equity" and how it is being used by investors

b. Calculate the debt to assets ratio and explain its meaning and significance to investors.

c. Calculate the price-earnings ratio of MMM and explain its meaning and significance to investors?

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The return on equity for MMM corporation is 10% for 2017 and profits aftertaxes are $40,000. Number

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a To calculate the equity capital of the company we need to subtract the total liabilities from the total assets Equity capital Total assets Total liabilities Given that the total liabilities for the ... View the full answer

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