Please Refer to Table 4-7 for the Following Question

Please refer to Table 4-7 for the following question.
Table 4-7
Hokie Corporation Comparative Balance Sheet
For the Years Ending December 31, 2009 and 2010
(Millions of Dollars)

Hokie had net income of $28 million for 2010 and paid total cash dividends of $20 million to their common stockholders.
-Calculate the following 2010 financial ratios of Aggie Corporation using the information given in Table 4-7:
i.current ratio
ii.acid test ratio
iii.debt ratio
iv.return on total assets
v.return on common equity

Correct Answer:

Verified

i.Current ratio = $48/$28 = 1....

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