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Question
Western World has the following selected data ($ in millions):
| Balance Sheet Data | 2015 | 2014 |
| Total Assets | $2,511 | $2,315 |
| Total Liabilities | 1,685 | 1,525 |
| Total Stockholders Equity | 826 | 790 |
| Income Statement Data | ||
| Sales | $786 | |
| Interest Expense | 77 | |
| Tax Expense | 32 | |
| Net Income | 80 |
Based on these amounts, calculate the following ratios for Western World in 2015:
1. Debt to equity ratio.
2. Return on assets ratio.
3. Return on equity ratio.
4. Times interest earned ratio.
Answer
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