Use the following data from a firm's pro forma (i.e., projected or forecasted) financial statements to calculate the following profitability ratios for the firm, assuming that all stocks are common stocks:
(a) net profit margin; (b) return on total assets;
(c) return on equity;
(d) price-earnings ratio.
Sales $ 600 million Net income
30 million Total Assets
750 million Stockholders' Equity
500 million Number of Common Stock Shares
10 million Price per share of common stock $60.00