Sepracor, Inc., a drug company, reported the following information. The company prepares its financial statements in accordance with GAAP.
Current liabilities - $ 554,114
Convertible subordinated debt - 648,020
Stockholders’ equity - 176,413
Net income - 58,333
Compute the following ratios for Sepracor, Inc. (Assume that year-end balances approximate annual averages.)
(1) Return on assets.
(2) Return on stockholders’ equity.
(3) Debt to assets ratio.
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