Calculate the net profit margin and asset turnover

Assignment Help Financial Management
Reference no: EM13987799

A venture recorded revenue of $1 million last year and a net profit of $100,000. Total assets were $800,000 at the end of last year.

a. Calculate the venture's net profit margin.

b. Calculate the venture's asset turnover.

c. Calculate the venture's return on total assets.

Reference no: EM13987799

Questions Cloud

Weighted average cost of capital-capital structure : (Weighted average cost of capital) ABBC Inc. operates a very successful chain of yogurt and coffee shops spread across the southwestern part of the United States and needs to raise funds for its planned expansion into the Northwest. What does ABBCs c..
Determine the first year of present value of cash flow : Company A sells machinery to Company B. Company B agrees to pay Company A $300,000 at the end of each of the next 6 years, with discount rate 6%. provide a clear calculation to determine the first year of Present value of cash flow. provide a clear c..
Market and book ratio-what is its debt-to-capital ratio : Bartley Barstools has a market/book ratio equal to 1. Its stock price is $12 per share and it has 5.2 million shares outstanding. The firm’s total capital is $135 million and it finances with only debt and common equity. What is its debt-to-capital r..
Weighted-average process cost system : Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product—a premium rug shampoo and cleaner. The manufacturing activity for the month of October has just been completed. Cost Reconciliation Schedule Cos..
Calculate the net profit margin and asset turnover : A venture recorded revenue of $1 million last year and a net profit of $100,000. Total assets were $800,000 at the end of last year. Calculate the venture's net profit margin. Calculate the venture's asset turnover. Calculate the venture's return on ..
The acquiring company enters on its balance sheet : Using fair value accounting for goodwill, under FAS 141R, determine the amount of goodwill that "the acquiring company" enters on its balance sheet in the following situation: Talmadge Corporation is acquiring the target Tyler, Inc. in a merger. What..
What is the maximum price he can pay for the car : Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of $5,300 per year. If he can get a four year loan with an interest rate 7%, what is the maximum price he can pay for the car?
Compensation and higher levels of employee performance : Is there a relationship between compensation and higher levels of employee performance? Please explain "yes" or "no" providing 3 reasons to support your position. How does organizational market position influence compensation philosophy?
Use rewards to attract-retain and motivate people : Organizations use rewards to attract, retain, and motivate people. Larger companies such as Boeing, Microsoft, Aetna can afford to offer employees valuable rewards and incentives. Smaller companies find it very difficult to compete with those rewards..

Reviews

Write a Review

Financial Management Questions & Answers

  All prescription drugs sales by volume

While generics account for more than three quarters of all prescription drugs sales by volume, they account for only 10% of all prescription sales revenues. It was not until after World War II, that it became clear that control over drug safety mecha..

  Suppose that the exchange rate

Suppose that the exchange rate is 1 dollar for 120 Yen. The dollar interest rate is 5%(continuously compounded) and the yen rate is 1%(continuously compounded). Consider an at the money American dollar call that is yen-denominated. What is the price ..

  Wright has decided to consider some off-balance sheet

David Wright, CFA, an analyst with Blue River Investment, is considering buying a Montrose CXable Company corporate bond. He has collected the following balance sheet and income statement information for Montrose as shown in Exhibit 10.10. Wright has..

  Assume that interest rate parity holds

Assume that interest rate parity holds and that 90-day risk-free securities yield 3% in the United States and 3.6% in Germany. In the spot market, 1 euro equals $1.38 dollar. Is the 90-day forward rate trading at a premium or discount relative to the..

  What is the market risk premium-required rate of return

A stock has a beta of 2.2, the risk-free rate is 6 percent, and the expected return on the market is 12 percent. Using the CAPM, what would you expect the required rate of return on this stock to be? What is the market risk premium?

  New clubs will also require increase in net working capital

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $760 per set and have a variable cost of $382 per set. The company has spent $191425 for a marketing study that determined the company will sell 55749 sets per year fo..

  Context of financial stakeholders for corporations

You are to initiate a discussion on the context in which corporations exist among the various stakeholders at issue. Identify three important stakeholders for a corporation and explain the role that each stakeholders plays within the corporation. Fur..

  Expected return-discrete distribution-required rate of retun

The market and Stock J have the following probability distributions:  Calculate the expected rates of return for the market and Stock J. Calculate the standard deviations for the market and Stock J. As an equity analyst you are concerned with what wi..

  Primary distinctions between us and foreign labor laws

Which of the following is NOT one of the primary distinctions between U.S. and foreign labor laws?

  Strategy consists of buying a market index product

A strategy consists of buying a market index product at 2010 and longing a put on the index with a strike of 2000. If the put premium is $18.00 and interest rates are 0.25% per month, what is the profit or loss at expiration (in 6 months) on the comb..

  There is sufficient evidence to conclude that the claim

There is sufficient evidence to conclude that the claim of this hypothetical weight loss programs has strong support from this sample.

  What is your expected rate of return

The common stock of bouncy bob is selling for $33.84. the stock recently paid dividends of $3 per share and has a projected constant growth rate of 8.5%. If you purchase the stock at the market price, what is your expected rate of return?

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