Denver, Incorporated, has sales of $15 million, total assets of $12.6 million, and total debt of $5.6 million. Assume the profit margin is 8 percent. What is the company's not income? (Do not round intermediate calculations and
Denver, Incorporated, has sales of $15 million, total assets of $12.6 million, and total debt of $5.6 million. Assume the profit margin is 8 percent. What is the company's not income? (Do not round intermediate calculations and
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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![Problem 3-2 Calculating Profitability Ratios [LO2]
Denver, Incorporated, has sales of $15 million, total assets of $12.6 million, and total debt
of $5.6 million. Assume the profit margin is 8 percent.
a. What is the company's net income? (Do not round intermediate calculations and
enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
b. What is the company's ROA? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. What is the company's ROE? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. Net income
b. ROA
c. ROE
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99ca4c7d-b53d-498a-8832-840f879ac2c0%2F14819bc4-0da6-4839-b508-5ea04e5c0e37%2Fmx6x9oo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3-2 Calculating Profitability Ratios [LO2]
Denver, Incorporated, has sales of $15 million, total assets of $12.6 million, and total debt
of $5.6 million. Assume the profit margin is 8 percent.
a. What is the company's net income? (Do not round intermediate calculations and
enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
b. What is the company's ROA? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. What is the company's ROE? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. Net income
b. ROA
c. ROE
%
%
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