Following is financial information for three ventures: Venture XX Venture YY Venture ZZ After-tax property margins 5% 25% 15% Asset turnover 2.0 times 3.0 times 1.0 times A. Calculate the ROA for each firm. B. Which venture is indicative of a strong entrepreneurial venture opportunity?
Following is financial information for three ventures: Venture XX Venture YY Venture ZZ After-tax property margins 5% 25% 15% Asset turnover 2.0 times 3.0 times 1.0 times A. Calculate the ROA for each firm. B. Which venture is indicative of a strong entrepreneurial venture opportunity?
Chapter2: Developing The Business Idea
Section: Chapter Questions
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Following is financial information for three ventures:
Venture XX | Venture YY | Venture ZZ | |
After-tax property margins | 5% | 25% | 15% |
Asset turnover | 2.0 times | 3.0 times | 1.0 times |
A. Calculate the ROA for each firm.
B. Which venture is indicative of a strong entrepreneurial venture opportunity?
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