What is its return on stockholders equity?

Jerry Rice and Grain Stores has $4630000 in year Show more Problem 3-16 Du Pont system of analysis [LO3] Jerry Rice and Grain Stores has $4630000 in yearly sales. The firm earns 3.5 percent on each dollar of sales and turns over its assets 3.0 times per year. It has $197000 in current liabilities and $313000 in long-term liabilities. (a) What is its return on stockholders equity? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the % sign in your response.) Return on stockholders equity ________________% (b) If the asset base remains the same as computed in part a but total asset turnover goes up to 4.00 what will be the new return on stockholders equity? Assume that the profit margin stays the same as do current and long-term liabilities. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the % sign in your response.) New return on stock holders equity _________ % Show less

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