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JennyPets
Oct 13, 2008, 04:44 PM
How do you find the return on assets and the return on equity given the following?

Sales $27,000,000
Total assets 19,000,000
Total debt 6,400,000
Profit margin 8%
Net income 2,160,000

yh70
Oct 14, 2008, 01:03 AM
ROA = TA / NI

ROE = TE / NI


So,

ROA = 19,000,000 / 2,160,000
= 8.79

ROE = 6,400,000 / 2,160,000
= 2.96



Good Luck :)