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Calculate Afton's return on assets and return on equity

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Last fiscal year, Afton Machinery had the following financial statement data:

Sales/Assets 2.10
Net Income/EBIT 0.65
EBIT/Sales 0.10
Assets/Equity 3.00

Calculate Afton's return on assets and return on equity.

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Solution Summary

The solution explains how to calculate the return on equity and return on assets

Solution Preview

Return on Assets = Net Income/Assets = Net Income/EBIT X EBIT/Sales ...

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