Compute the mean and standard deviation of roa

Assignment Help Finance Basics
Reference no: EM133076277

The table below contains the Return on Assets (ROA) and the growth in sales for two publicly traded hospitality firms - one restaurant and the other a hotel. Compute the mean and standard deviation of the ROA and sales growth. Based on the volatility of the returns and growth rate, identify which of the firms is the hotel and which one is the restaurant. Justify your choice.

Date

Firm A

Firm B

 

 

ROA

Sales Growth

ROA

Sales Growth

12/31/2019

5%

1%

13%

0%

12/31/2018

8%

-9%

18%

-8%

12/31/2017

6%

34%

15%

-7%

12/31/2016

3%

18%

15%

-3%

12/31/2015

14%

5%

12%

-7%

12/31/2014

11%

8%

14%

-2%

12/31/2013

9%

8%

15%

2%

12/28/2012

9%

-4%

15%

2%

12/30/2011

3%

5%

17%

12%

12/31/2010

5%

7%

15%

6%

 

Reference no: EM133076277

Questions Cloud

Compute the sales for November : The accounts receivable balance at the end ofthe previous quarter was $100,000. Compute the sales for November
Diagram the combined dollar profit schedule : (1) Diagram the 'combined' dollar profit schedule against the future spot exchange rate.
Organizational leadership and diversity in the workplace : Identify the characteristics of good leaders. Explain the challenges to the leadership construct. discuss barriers to acceptance of diversity in organizations
What is the expected growth rate for the company : Based on this information, what is the expected growth rate for the company?
Compute the mean and standard deviation of roa : Based on the volatility of the returns and growth rate, identify which of the firms is the hotel and which one is the restaurant. Justify your choice.
Understanding of capital budgeting : People in this class should have an understanding of Capital Budgeting, Time Value of Money and spreadsheets. Analyze the following two projects from a Capital
Leadership and decision making : What is the impact to date of COVID 19 on this country? What is this political leader's policy response to the crisis (domestic and or foreign policies)?
Cost of new equity : What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places.
Evaluate cultural and economic dynamics : Evaluate cultural and economic dynamics that have impacted the emergence and development of sports and the sports industry in contemporary society.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing the expected rate of return

Its dividend is expected to grow at a constant rate of 9.00%p per year. If walter's stock currently trades for $18.00 per share, what is the expected rate of return?

  The slopes of some key graph-lines covered in the b2 unit

">Consider the following statement about the slopes of some key graph-lines covered in the B2 unit. I. The slope of an estimated Security Market Line (SML) equals the Equity Premium estimated by the person building the SML graph.

  What are the steps in developing the mcc schedule

How does the marginal cost of capital differ from the weighted average cost of capital?

  Capital budgeting question

The budget committee has received the following projects. They are mutually exclusive. The Corporation uses 10 percent as the rate of return.

  Calculate the net present value of investment

Wack Jendler, a manager of the Marshmallow Division of Stay Puft, Inc., has the opportunity to expand the division by investing in additional machinery costing.

  Explain the steps in accounting cycle

Suppose your friend, Don Jones, has begun his new small business as a sole proprietorship. Comment on his choice. Is a sole proprietorship the best choice for business?

  Positive exposure to event risk

Why traditional financial assets have negative exposure to event risk, while commodities generally have positive exposure to event risk?

  Cost approach to value estimation

You will need to understand the cost approach to value estimation.

  Calculate the current value of the firm equity

The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in the current year is $250,000

  What is the standard deviation of the rate of return

A project has a 0.52 chance of doubling your investment in a year and a 0.48 chance of halving your investment in a year.

  Indicate the impact on the balance of cash

Consider the following set of transactions occurring during the month of May for Bison Consulting Company. For each transaction, indicate the impact.

  Explain the results of the different market multiple ratios

You may take the share price and no. of shares outstanding as on 31/12/2019 for computing the multiples.

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