Assume the following data for Cable Corporation and Multi-Media Incorporated. Cable Corporation $ 39,800 352,000 Multi-Media Incorporated $ 190,000 2,170,000 966,000 409,000 545,000 421,000 Net income Sales Total assets Total debt Stockholders' equity a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Cable Corporation Multi-Media, Incorporated 234,000 175,000 2. Which firm has the higher return? Return on Stockholders' Equity % %

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 66P
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Assume the following data for Cable Corporation and Multi-Media Incorporated.
Multi-Media
Incorporated
Cable
Corporation
$ 39,800
352,000
409,000
$ 190,000
2,170,000
966,000
234,000
545,000
175,000
421,000
Net income
Sales
Total assets
Total debt
Stockholders' equity
a. 1. Compute return on stockholders' equity for both firms.
Note: Input your answers as a percent rounded to 2 decimal places.
Cable Corporation
Multi-Media, Incorporated
2. Which firm has the higher return?
Return on
Stockholders'
Equity
%
%
Transcribed Image Text:Assume the following data for Cable Corporation and Multi-Media Incorporated. Multi-Media Incorporated Cable Corporation $ 39,800 352,000 409,000 $ 190,000 2,170,000 966,000 234,000 545,000 175,000 421,000 Net income Sales Total assets Total debt Stockholders' equity a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Cable Corporation Multi-Media, Incorporated 2. Which firm has the higher return? Return on Stockholders' Equity % %
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