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Essentials Of Investments
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
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1) Witherspoon Corporation reports the following information on its financial statements for the current year: 1) $40,000 6,000 12,500 Net income Interest expense Income tax expense Preferred dividends 3,600 End Beginning of Year $ 68,000 340,000 41,000 of Year $ 81,000 365,000 39,000 Current assets Plant assets Current liabilities Long-term liabilities Common stockholders' equity Preferred stockholders' equity 100,000 90,000 217,000 50,000 267,000 50,000 a. Calculate return on assets. b. Calculate return on equity. c. Discuss how these measures might be used.
Transcribed Image Text:1) Witherspoon Corporation reports the following information on its financial statements for the current year: 1) $40,000 6,000 12,500 Net income Interest expense Income tax expense Preferred dividends 3,600 End Beginning of Year $ 68,000 340,000 41,000 of Year $ 81,000 365,000 39,000 Current assets Plant assets Current liabilities Long-term liabilities Common stockholders' equity Preferred stockholders' equity 100,000 90,000 217,000 50,000 267,000 50,000 a. Calculate return on assets. b. Calculate return on equity. c. Discuss how these measures might be used.
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