Answers to Text Discussion Questions
Given the following financial data: Net income/Sales = 4 percent; Sales/Total assets = 3.5 times; Debt/Total assets = 60 percent; compute: a. Return on assets. b. Return on equity. 8-3. Du Pont analysis. 4. Explain why in problem 3 return on equity was so much higher than return on assets. 8-4. ................
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