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    JennyPets's Avatar
    JennyPets Posts: 4, Reputation: 1
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    #1

    Oct 13, 2008, 04:44 PM
    How do you find return on assets and return on equity?
    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's Avatar
    yh70 Posts: 6, Reputation: 2
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    #2

    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 :)
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