Calculate millers return on equity

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Reference no: EM132467671

row 1 - Value of stolen gold $12200000 in 1550

row 2 - 10 year government bond rate 2.7% pa

row 3 - mortgage interest rate 5.1% pa

row 4 - British empire equivalent return 6.0% pa

row 5 - credit card interest rate 12.9% pa

row 6 - savings account interest rate 1.9% pa

row 7 - Term deposit interest rate 3.8% pa

row 8 - W. bunting's credit card debt $5000

row 9 - Millers metal works' Asset turnover 5

row 10 - Millers metal works' net profit margin 4.00%

row 11 - Millers metal works' total debt ratio 60.00%

row 12 - snout and smith's gross profit $35000

row 13 - snout and smith's sales $110000

row 14 - charlie hebro's saving target 1100

row 15 - snout and smith's operating expenses $9600

row 16 - snout and smith's net profit margin 12.9%

Please refer and using above information and giving answer following questions

Question 1: It is said that the entire financial fortune of the British Empire can be computed using the compound rate of interest shown in the data table in row 4 applied to the gold that the English stole from the Spanish in the sixteenth century. If this was the case and by the year 1550 the English had stolen the amount shown in row 1 of the data table, what would the value of the British Empire have been at its peak in 1950 assuming compounding based on annual stops?

Question 2: Charlie Hebro intends to save for a house by making monthly deposits into a term savings account that earns interest at the rate shown in row 7 of the data table, with interest compounded monthly. His budget allows him to save the monthly amount shown in row 14 of the data table starting at the end of this month.

a) What will his savings be if he follows his plan for 5 years?

b) If he receives an unexpected inheritance of $50,000 today which he deposits to start off his home savings, what will his total savings be at the end of the five years.

Question 3: William Bunting has credit card debt shown in row 8 of the data table. He is considering increasing his home mortgage loan to pay it off. The credit card and home mortgage interest rates are shown in rows 5 and 3 respectively of the data table. Both loan types are computed on monthly stops. He is intending to increase his home mortgage payments so as to amortise the credit card debt over five years.

a) How much would his monthly repayments to the credit card company be if he intended to pay out the debt over five years?

b) By how much will his mortgage payments increase if he adopts this plan to deal with his credit card debt?

c) How much would he save by transferring his credit card debt to his mortgage?

Question 4: Millers Metalworks, Inc. has a total asset turnover in row 9 and a net profit margin in row 10. The total debt ratio for the firm is in row 11. Calculate Millers's return on equity.

Question 5: In 2018 Snout and Smith, Inc. had a gross profit in row 12 and sales in row 13. S & S's operating expenses for 2018 were in row 15, and its net profit margin was in row 16. Snout and Smith had no interest expense in 2018. Using this information, what was S & S's operating profit margin for 2018?

Reference no: EM132467671

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