Return on total assets: This ratio indicates how efficiently the corporation has used its assets to generate its earnings.
Return on common stock equity: This ratio indicates how much net income is generated using shareholders’ funds.
Book value per share: Book value per share can be computed by dividing the shareholders’ equity by the number of shares. It is one of the methods of determining the value of a corporation.
(a)
To determine the return on the total assets.
(b)
To compute: To compute the return on common stock equity.
(c)
To determine the net income per share.
(d)
To determine from the point of view of income, is it advantageous of JK Co. to have a long-term debt outstanding.
(e)
To determine book value per share.

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Chapter 15 Solutions
INTERMEDIATE ACCOUNTING (LOOSELEAF)
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