Return on equity and average stockholders equity

Assignment Help Financial Accounting

Reference no: EM13906272

The 2014 financial statements of Chase Company and Conor Company showed the following

Chase Conor

Net sales revenue $150,000 $200,000

Profit Margin 6% 5%

Total average assets $40,000 $80,000

Financial leverage % -5% +6.5%

Interest expense (net of tax) $1,000 $800

a. For each company calculate the following items:

i. Net income

ii. Return on assets

iii. Return on equity

iv. Average stockholders' equity

b. Assuming that both Chase and Conor are in the same industry, which company appears to be the better investment and why?

Reference no: EM13906272

Questions Cloud

Fill out a draft of the front page of a schedule c for bps : Ben teaches golf lessons at a country club under a business called Ben's Pure Swings (BPS). Fill out a draft of the front page of a Schedule C for BPS.

Rory company has a machine with a book value : Rory Company has a machine with a book value of $ 75,000 and a remaining five year useful life.

Discuss linearity time-invariance and causality : Discuss linearity, time-invariance and causality of the following systems

Large number of files and folders : As part of her business activities, Sharon has created a large number of files and folders. Whenever she needs to view the details of the files stored in a folder, Sharon browses to the folder using Windows Explorer. However, she finds it cumberso..

Return on equity and average stockholders equity : Return on assets. Return on equity. Average stockholders' equity. Assuming that both Chase and Conor are in the same industry, which company appears to be the better investment and why?

The dielectric constant of a doped gaas : The dielectric constant of a doped GaAs can be expressed as Er=11.56+j0.001 at wavelength lambda 1550nm.Evaluate the propagation loss(in dB/Cm) due to absorption when light(lamda = 1550nm) propagates in the GaAs.

Costs and benefits of new equipment that would custom : Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes.

Wireless home ac remote : For each of the following application: A) Wireless home AC remote.B) Nuclear Power plant monitoring system.

True with regard to budgetary planning : An order at a special price that is accepted will increase income if the revenue received exceeds the: Sutton Company produced 98,000 units in 46,000 direct labor hours. Production for the period was estimated at 100,000 units and 50,000 direct labor..

User Account

All Pages