Calculate the firm operating return on assets

Assignment Help Finance Basics
Reference no: EM132058315

Qusetion: Profitability analysis) The Allen Corporation had sales in 2013 of $60 million, total assets of $42 million, and total liabilities of $23 million. The interest rate on the company's debt is 6.4 percent, and its tax rate is 35 percent. The operating profit margin is 10 percent.

a. Compute the firm's 2013 net operating income and net income.

b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)

a. Compute the firm's 2013 net operating income and net income.

The firm's 2013 net operating income is $6.00 million. (Round to two decimal places.)

The firm's 2013 net income is $__million. (Round to two decimal places.)

Reference no: EM132058315

Questions Cloud

Explain why a mouse or rat population : Explain why a mouse or rat population would continuously grow while other mammals (cheetahs) are nearly extinct?
What is the dominant risk factor for investors : What is the dominant risk factor for investors who hold diversified portfolios of assets?
Describe the life cycle of a monkey : Describe the life cycle of a monkey. How does DNA get transferred to the baby monkeys include mitosis?
What general type of lifecycle is chlamydomonas : What general type of lifecycle is chlamydomonas? Is it a Haploid adult or Diploid Adult, etc?
Calculate the firm operating return on assets : Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)
Identify the major themes that the author uses in the poem : What is your reaction to the poem? What about our society/your experience do you think brings you to that reaction?
What is effective annual rate on this loan : What is the effective annual rate on this loan? What will your monthly payments be?
What is the profitability index for an investment : What is the profitability index for an investment with the following cash flows given a 8 percent required return? The response must be typed.
Problematic to energy production : Why would a lack of NADH be problematic to energy production?

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the annual percentage rate of interest

Suppose you decide to buy a building for $30,000 by paying $5,000 down and suppose a mortgage of $25,000. The bank offers you a fifteen year mortgage requiring annual end of year payments of $3,188 each.

  Bluefield is evaluating a new investment project

If Bluefield is evaluating a new investment project which has the same risk as the firm's typical project, illustrate what rate should it utilize to discount the project's cash flows.

  Much-needed expansion projects

Chamberlain Co. wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 10 percent coupon bonds on the market

  Calculate the adjusted diluted eps

The following table presents the most recent income statement of Company ELA. The footnote of the 10-K filing mentions that the company recorded

  Calculate the forward exchange rate the bank will provide

You obtain information from your bank on the forward exchange rate contract and given the following information.

  Why so many people are taken in by get rich quick schemes

According to Mary Goldberg, the chance to invest in New World Explorations was "too good to pass up," and she lost $10,000. Why do you think so many people are taken in by get-rich-quick schemes?

  Example of a sunk cost or not

At the moment PSC is leasing their Harris Park wharf facility to an unrelated entity for $85,000 p.a. The introduction of the new ferry will require

  Current price for a share of this fund

Using the Internet or a newspaper, what is date and the current price for a share of this fund? Based on this information, would your investment?

  Financial planning improve performance

ABC Construction LLC is a construction firm owned by Mr. Mohammad. Mr. Mohammad established the company 7 years ago in Dubai.  Now it has branches in Emirates.

  Foreign travel services has net income of 48400 total

foreign travel services has net income of 48400 total assets of 219000 total equity of 154800 and total sales of

  Bop of different countries

Look at the BoP of 3 different countries: UAE, a developed country, and a developing country for at least a period of 4 years. Include these BoPs in the appendix of your report.

  What is the risk of the project

Assume interest rate is 5%. We are uncertain about the project. The annual profit has two outcomes, a gain $700 or a loss $(-300).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd