Assume the following data for Cable Corporation and Multi-Media Inc.


Cable
Corporation Multi-Media Inc.
Net income $ 39,800 $ 190,000
Sales 352,000 2,170,000
Total assets 409,000 966,000
Total debt 234,000 545,000
Stockholders' equity 175,000 421,000

a-1. Compute return on stockholders’ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)



a-2. Which firm has the higher return?


Multi-Media Inc.

Cable Corporation



b. Compute the following additional ratios for both firms

Cable Corporation Multi-Media Inc.
Net income/Sales % %
Net income/Total assets % %
Sales/Total assets times times
Debt/Total assets % %