What is the return on the stockholders


Profitability ratios Neon Light Company has $1,000,000 in assets and $600,000 of debt. It reports net income of $100,000. a. What is the return on the assets? b. What is the return on the stockholders' equity?

c. If the firm has an asset turnover ratio of 3 times, what is the profit margin?

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Accounting Basics: What is the return on the stockholders
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