Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) 91,140 1,960 $4,900 960 $3,940
Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) 91,140 1,960 $4,900 960 $3,940
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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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Question
![vas.msst
Net sales
Operating costs except depreciation
Depreciation
Earnings before interest and taxes (EBIT)
Less interest
Earnings before taxes (EBT)
Taxes
Net income
Other data:
Shares outstanding (millions)
Common dividends (millions of $)
Int rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
$98,000
91.140
1,960
$4,900
960
$3,940
1,576
$2,364
500.00
$827.40
6%
40%
$56.74
Refer to Exhibit 4.1. What is the firm's ROA? Do not round your intermediate calculations,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F008f1f33-a5f8-4fde-a427-2a87feb365a3%2Fba5ef328-3433-4fea-85de-7138a76c5d2a%2F5hus6ib_processed.jpeg&w=3840&q=75)
Transcribed Image Text:vas.msst
Net sales
Operating costs except depreciation
Depreciation
Earnings before interest and taxes (EBIT)
Less interest
Earnings before taxes (EBT)
Taxes
Net income
Other data:
Shares outstanding (millions)
Common dividends (millions of $)
Int rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
$98,000
91.140
1,960
$4,900
960
$3,940
1,576
$2,364
500.00
$827.40
6%
40%
$56.74
Refer to Exhibit 4.1. What is the firm's ROA? Do not round your intermediate calculations,
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