Calculate the return on equity ratio

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Reference no: EM131910244

Use the following data from a firm's pro forma (i.e., projected or forecasted) financial statements to calculate the following profitability ratios for the firm, assuming that all stocks are common stocks:

(a) net profit margin; (b) return on total assets;

(c) return on equity;

(d) price-earnings ratio.

Sales $ 600 million Net income

30 million Total Assets

750 million Stockholders' Equity

500 million Number of Common Stock Shares

10 million Price per share of common stock $60.00

Reference no: EM131910244

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