Compute return on stockholders equity for both firms

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Reference no: EM131586383

Assume the following data for Cable Corporation and Multi-Media Inc.

Cable Corporation:

Net income- $35,800

Sales- 346,000

Total assets- 449,000

Total debt- 201,000

Stockholders equity- 248,000

Multi- Media Inc.

Net Income- $128,000

Sales- 2,700,000

Total assets- 929,000

Total debt- 523,000

Stockholders equity- 406,000

A) Question: Compute return on stockholders equity for both firms.

B) Compute the following additional ratios for both firms.

Net income/sales

Net income/total assets

Sales/total assets

debt/total assets

Reference no: EM131586383

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