Given the Following for Mighty Manufacturing Company (A)Calculate ROA

question 23

Essay

Given the following for Mighty Manufacturing Company:
$$\begin{array} { l l l } \text { Operating efficiency } & = & 0.1 \\\text { Net income } & = & \$ 50,000,000 \\\text { Net income margin } & = & 0.05 \\\text { Total asset turnover } & = & 3 \\\text { Leverage } & = & 1.5 \\\text { Retention rate } & = & 0.3\end{array}$$ (a)Calculate ROA.
(b)Calculate ROE.
(c)Find the growth rate of dividends.

---

Definitions:

Positive Statement

An objective and fact-based statement that can be tested and validated, focusing on describing how the world is.

Normative Statement

An opinion or judgment that suggests how things should be, rather than stating factual or objective observations.

Government Spending

The total amount of money that the government expends on public services and projects, such as infrastructure and defense.

Macroeconomist

An economist who studies and analyzes large-scale economic phenomena, including inflation, unemployment, and economic growth.