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Don Jorge Shipping Inc

Question 86

Essay

Don Jorge Shipping Inc. has net income of $40 million, total assets of $300 million, and sales of $800 million. Its equity is $190 million.
(a) Calculate ROA.
(b) Calculate ROE.
(c) If the book value per share is $7.00, what is EPS?

Correct Answer:

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(a) ROA = net income margin x turnover
=...

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