Presented below are summary financial data from Pebble Company’s annual report: Assume that the Pebble Company is all equity financed. Calculate the following ratios for Years 1 and 2:  Return on equity, Return on assets (levered), Return on sales (levered), Total asset turnover, Financial leverage

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter12: Capital Structure
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Presented below are summary financial data from Pebble Company’s annual report:

Assume that the Pebble Company is all equity financed.

Calculate the following ratios for Years 1 and 2:  Return on equity, Return on assets (levered), Return on sales (levered), Total asset turnover, Financial leverage

(In millions)
Year 2
Year 1
Balance sheet
$111,005
68,612
$153,304
69,493
Total assets
Shareholders' equity
Income statement
Net sales
$101,303
$96,004
Net income
14,132
14,490
Transcribed Image Text:(In millions) Year 2 Year 1 Balance sheet $111,005 68,612 $153,304 69,493 Total assets Shareholders' equity Income statement Net sales $101,303 $96,004 Net income 14,132 14,490
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