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The following information is provided for two companies in the same industry:
Required:
1.Calculate the return on assets (ROA)for both companies.Show supporting calculations.Show your answer as a percentage with one decimal place.(For example,0.50000 = 50.0%).
2.Calculate the asset turnover for both companies.Show supporting calculations.Round your answer to two decimal places.(For example,0.98765 = 0.99)
3.Based on your calculations above,which company appears to be a better performer?
Acquiring Firm
A company that takes over or buys another company, typically referred to in the context of mergers and acquisitions.
Target Firm
A company that is the subject of a takeover attempt or acquisition interest by another company.
Management Team
The group of individuals who oversee the operations of a business and make high-level strategic decisions.
Tender Offer
A proposal made publicly by an individual or company to purchase shares from shareholders of a public corporation at a specified price within a certain time frame.
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