Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Assume the following data for Cable Corporation and Multi-Media Incorporated.
Net income
Sales
Total assets
Total debt
Stockholders' equity
Cable
Corporation
$ 34,400
364,000
448,000
237,000
211,000
Cable Corporation
Multi-Media, Incorporated
a. 1. Compute return on stockholders' equity for both firms.
Note: Input your answers as a percent rounded to 2 decimal places.
Return on
Stockholders'
Equity
Multi-Media
Incorporated
$ 128,000
2,700,000
%
%
970,000
468,000
502,000
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Transcribed Image Text:Assume the following data for Cable Corporation and Multi-Media Incorporated. Net income Sales Total assets Total debt Stockholders' equity Cable Corporation $ 34,400 364,000 448,000 237,000 211,000 Cable Corporation Multi-Media, Incorporated a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Return on Stockholders' Equity Multi-Media Incorporated $ 128,000 2,700,000 % % 970,000 468,000 502,000
2. Which firm has the higher return?
O Cable Corporation
O Multi-Media Incorporated
b. Compute the following additional ratios for both firms.
Note: Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decima
places. Round your Sales/Total assets answers to 2 decimal places.
Net income/Sales
Net income/Total assets
Sales/Total assets
Debt/Total assets
Cable Corporation
%
%
times
%
Multi-Media Incorporated
%
%
times
%
expand button
Transcribed Image Text:2. Which firm has the higher return? O Cable Corporation O Multi-Media Incorporated b. Compute the following additional ratios for both firms. Note: Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decima places. Round your Sales/Total assets answers to 2 decimal places. Net income/Sales Net income/Total assets Sales/Total assets Debt/Total assets Cable Corporation % % times % Multi-Media Incorporated % % times %
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