Assume the following data for Cable Corporation and Multi-Media Inc.
Cable
Corporation Multi...
Assume the following data for Cable Corporation and Multi-Media Inc.
Cable
Corporation Multi-Media Inc.
Net income $ 39,800 $ 190,000
Sales 352,000 2,170,000
Total assets 409,000 966,000
Total debt 234,000 545,000
Stockholders' equity 175,000 421,000
a-1. Compute return on stockholders’ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)
a-2. Which firm has the higher return?
Multi-Media Inc.
Cable Corporation
b. Compute the following additional ratios for both firms
Cable Corporation Multi-Media Inc.
Net income/Sales % %
Net income/Total assets % %
Sales/Total assets times times
Debt/Total assets % %
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