Cream of Tomato Company has the following data available.Net income = $250,000Sales = $2.5 millionTotal asset turnover = 3Equity multiplier = 2.5Cream of Tomato does not have any preferred stock outstanding. Note that the equitymultiplier is defined as total assets to equity. Calculate the return on assets and return onequity for Cream of Tomato.
Cream of Tomato Company has the following data available.Net income = $250,000Sales = $2.5 millionTotal asset turnover = 3Equity multiplier = 2.5Cream of Tomato does not have any preferred stock outstanding. Note that the equitymultiplier is defined as total assets to equity. Calculate the return on assets and return onequity for Cream of Tomato.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Cream of Tomato Company has the following data available.
Net income = $250,000
Sales = $2.5 million
Total asset turnover = 3
Equity multiplier = 2.5
Cream of Tomato does not have any
multiplier is defined as total assets to equity. Calculate the
equity for Cream of Tomato.
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