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    Easter Egg and Poultry Company

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    Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000.
    a. What is the firm's return on assets?
    b. What is its return on stockholders' equity?
    c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)?

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    Profitability Ratios

    Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000.

    a. What is the firm's return on assets?

    return on ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer
    a. What is the firm's return on assets?
    b. What is its return on stockholders' equity?
    c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)?

    $2.49

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