Using the data in the following table for a number of firms in the same industry, do the following: Firm (in Millions of Dollars) A B C D Sales $15 $10 $15 $30 Net income after tax 1.75 0.50 2.00 1.50 Total assets 6.0 18.0 8.0 15.5 Stockholders' equity 13.0 10.0 6.0 5.0 Compute the total asset turnover, the net profit margin, the equity multiplier, and the return on equity for each firm. Round your answers to two decimal places. A B C D Total Asset Turnover x x x x Net Profit Margin Equity Multiplier x x x x Return on Equity Evaluate each firm’s performance by comparing the firms with one another. Which firm has the lowest total asset turnover value? -Select-Firm AFirm BFirm CFirm DItem 17 Which firm has the lowest net profit margin value? -Select-Firm AFirm BFirm CFirm DItem 18 Which firm has the lowest equity multiplier value? -Select-Firm AFirm BFirm CFirm DItem 19 Which firm has the lowest return on equity value? -Select-Firm AFirm BFirm CFirm DItem 20
Using the data in the following table for a number of firms in the same industry, do the following: Firm (in Millions of Dollars) A B C D Sales $15 $10 $15 $30 Net income after tax 1.75 0.50 2.00 1.50 Total assets 6.0 18.0 8.0 15.5 Stockholders' equity 13.0 10.0 6.0 5.0 Compute the total asset turnover, the net profit margin, the equity multiplier, and the return on equity for each firm. Round your answers to two decimal places. A B C D Total Asset Turnover x x x x Net Profit Margin Equity Multiplier x x x x Return on Equity Evaluate each firm’s performance by comparing the firms with one another. Which firm has the lowest total asset turnover value? -Select-Firm AFirm BFirm CFirm DItem 17 Which firm has the lowest net profit margin value? -Select-Firm AFirm BFirm CFirm DItem 18 Which firm has the lowest equity multiplier value? -Select-Firm AFirm BFirm CFirm DItem 19 Which firm has the lowest return on equity value? -Select-Firm AFirm BFirm CFirm DItem 20
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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Using the data in the following table for a number of firms in the same industry, do the following:
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