Comparative calendar year financial data for a company are shown below.Calculate the following ratios for 2018:
(a)return on total assets
(b)return on common stockholders' equity.
Definitions:
Investments
Investments refer to the allocation of money into assets with the expectation of generating income or profit in the future.
Current Consumption
Current consumption denotes the total goods and services consumed by individuals or the economy at a given time, excluding savings.
Real Interest Rate
The rate of interest an investor expects to receive after inflation has been accounted for.
Time Preference
An individual's preference for receiving goods, services, or money now rather than in the future, often influencing economic decisions.
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