Question

Profitability Analysis for Splendid Corp For the year ended September 26, 2015, Splendid Corporation reported was $19.503 millon. No preferred stock was outstanding in either year income of 52,230 on and on September 27, 2014, Hered: 1. Compute Splendid's return on common stockholders' equity for the year ended September 26, 2015, 2. What other ratio would you want to compute to decide whether Splendis successfully employing lever Previous Chuck My Work 2 ore CheckMy Work uses remang St Atent for den

Answer 1

1	Return on Equity	=	11.63%
2	Return on assets
	Workings:
	Return on Equity	=	Net Income / Average Equity
		=	$2230 million / $19170.50 million
		=	11.63%
	Average Equity	=	[($18438 million + 19903 million) /2]
		=	$ 19,170.50	million