Assume the following data for Cable Corporation and Multi-Media Inc.
Compute the return on stockholders’ equity for both firms using Ratio 3a. Which firm has the higher return?
Return on stockholder’s equity of Capable corporation is 13.05% and Multimedi Inc. is 33.10%.
Hence, the Return on stockholder’s equity of Multimedia Inc is more than that of the capable corporation.
Perez Corporation has the following financial data for the years 20X1 and 20X2:
Cost of goods sold
c. What conclusions can you draw from part a and part b?
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
The total assets for this company equal $80,000. Set up the equation for the Du Pont system of ratio analysis, and compute c, d, and e.
d. Total assets turnover ratio.
Times mirror and glass company
Less: Cost of goods sold
Less: selling and administrative expenses
Less: Interest expenses
Earning before taxes
Less: Taxes (30%)
Earning after taxes
*equal income before interest and taxes
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