Interpreting results from the du pont system of analysis


Interpreting results from the Du Pont system of analysis [LO3] Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 30,700 $ 149,000 Sales 361,000 2,390,000 Total assets 423,000 994,000 Total debt 199,000 506,000 Stockholders' equity 224,000 488,000 a-1. Compute return on stockholders’ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Return on Stockholders’ Equity Cable Corporation % Multi-Media, Inc. % a-2. Which firm has the higher return? Cable Corporation 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 % % References WorksheetProblem 3-17 Interpreting results from the Du Pont system of analysis [LO3]

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Financial Management: Interpreting results from the du pont system of analysis
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