gage
Learn,
Return
on
total
asset
g
i
this
course
m
0
x
,
-
Return
on
total
assets
=
0.1141
or
11.41%
IV)
Return
On
common
e
equity
quity
=
Net
income
/
Com
convert
a||
Calculations
t
Year
2
:
Return
ON
common
equity
=
$1.930
/
S5,625
.
Return
on
common
equity
=
0.3431
or
34,
31%
v)
Basic
earning
power
=*eg|T
/
Total
assets
trends
in
a
company's
Ive.
Identify
which
of
{
Year
1
:
Basic
earning
power
=
$2
597
/
$10,575
Ny
earned
a
net
inco
Basic
earning
power
=
0.2456
or
24.56%
creases,
it
could
mea
assets
a
firm
owns.
True
Statement
:
i)
A
higher
operating
margin
than
industry
average
indicates
either
lower
operating
g
hlgher
product
prrlcmg
or
both
ot
increase,
return
¢
