Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 32,400 $ 127,000
Sales 377,000 2,830,000
Total assets 408,000 925,000
Total debt 195,000 547,000
Stockholders' equity 213,000 378,000
a-1. Compute return on stockholdersâ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)
Return on Stockholder's equity
Cable Corporation %
Multi-Media Inc. %
a-2. Which firm has the higher return?
Cable Corporatio
Multi-Media Inc.
b. Compute the following additional ratios for both firms. (Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimal places. Round your Sales/Total assets answers to 2 decimal places.)
Cable Corporation Multi-Media Inc
Net income/Sales % %
Net income/Total assets % %
Sales/Total assets times times
Debt/Total assets % %