Grundig Technologies Is a Manufacturer

question 13

Essay

Grundig Technologies is a manufacturer. Below are the company's two most recent balance sheets and its most recent income statement. Use this information to answer the following questions:
a. Calculate the rate of return on assets (ROA) for 2011. Disaggregate ROA into the profit margin for ROA and total assets turnover components.
b. Calculate the rate of return on common stockholders’ equity (ROCE) for 2011. Disaggregate ROCE into the profit margin for ROCE, total assets turnover and capital structure leverage components.
c. Did financial leverage work to the advantage of the common shareholders during 2011? Explain.

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Definitions:

Psychodynamic Perspective

A psychological approach that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Cognitive Perspective

An approach in psychology that emphasizes the importance of mental processes in how people perceive, remember, think, and solve problems.

Learning Perspective

A theoretical viewpoint that emphasizes the role of experience and learning in shaping behavior.

Sociocultural Perspective

An approach in psychology that examines how social and cultural factors influence human behavior and mental processes.