Computation of earnings per share at the given net income

Assignment Help Finance Basics
Reference no: EM1312239

Computation of Earnings per share at the given net income

Wollen Inc., evaluates its divisions as investment centres. The sales, income, and assets of its three divisions follow. Calculate return on investment for each division. Which division is best?

PARTICULARS

 DIVISION A

 DIVISION B

 DIVISION C

Sales

 $800,000

 $800,000

 $800,000

Profit

 $100,000

 $157,000

 $200,000

Assets

 $600,000

 $7,900,000

 $4,000,000

Calculate the return on investment using the Du Pont method. What is revealed?

Reference no: EM1312239

Questions Cloud

Probability for commercial successes : What is the probability that no more than two of the three are commercial successes?
Image processing techniques : Explain the term convolution. Explain one of the image processing techniques in the spatial space for the medical imaging application.
Performing 1-sample t-test on data : Do 1-sample t-test to see if people in Chicago have travelled to fewer states than people nationwide.  Utilize the 10% (.10) level of significance.
Weather phenomenon called the dust bowl also occurred : During this time period, a weather phenomenon called the Dust Bowl also occurred. Conduct an Internet search on The Dust Bowl to discover more about it.
Computation of earnings per share at the given net income : Computation of Earnings per share at the given net income in addtion to this calculate the return on investment using the Du Pont method
Allocating the budget-maximize the number of customers : If your payroll (budget) is increased to $120,000, what should you do to maximize the number of customers served?
What is the official unemployment rate : Illustrate what is the size of the labor force. Illustrate what is the official unemployment rate.
Computing the monthly installment of the mortgage loan : What will Ricky and Lucy's new monthly payments be? (Please be sure to show how calculations are made.
What happens when width of the pulse is increased : What will most likely cause arcing at the switch contacts.

Reviews

Write a Review

Finance Basics Questions & Answers

  Describing elements of financial planning process

Write down two elements of financial planning process?( it is cash planning and profit planning) Why is cash planning as very important as profit planning?

  Computation of the preference dividend before declaring

Computation of the Preference dividend before declaring the common dividend and What is the minimum amount the firm must pay per share to its preferred stockholders

  Dollar amount that winters must debit the vehicles account

Determine the dollar amount that Winters must debit the Vehicles account

  Computation of value of the bond

Computation of value of the bond and What can you conclude about the relationship between yield to maturity and holding period returns

  What is the average of using simulation

Objective type questions on capital budgeting and what is the average of using simulation in the capital budgeting process is

  Computation of partner''s return on equity

Computation of partner's return on equity and Asset value & Partner's Capital and Beginning equity balance

  Explaining cash management firm-s-opportunity cost is given

As the bank is also doing lot of record keeping, firm’s administrative cost would reduce by $2,000 per month. What suggestion would you provide firm with respect to proposed cash management suppose the firm’s opportunity cost is 12%?

  Interest equivalent factor

Interest equivalent factor,  Lori Stratton is considering investing in a bond that provides a yield of 8.35 percent or a preferred share with a yield of 7.09 percent. Lori lives in Ontario and at her level of taxable income, the federal tax rate is ..

  Cost of equity capital using arithmetic average growth rate

If stock presently sells for= $50, what is your best estimate of company’s cost of equity capital by using arithmetic average growth rate in dividends?

  Explain fully the reasons for your choice

Could this be balance sheet for St. Ann's Credit Union or Bank of America. Explain fully the reasons for your choice.

  Computation of hpr listed price of a bond and value

Computation of HPR listed price of a bond and value of put option and You put up $50 at the beginning of the year for an investment

  Computation of amount to be invested each year

Computation of Amount to be invested each year for a target future value and Net Present Value of alternate investment options.

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