Find what is the company return on equity

Assignment Help Financial Accounting
Reference no: EM132620847

Problem 1: Booklet Inc. has sales of $4,500,000. Total assets are $1,250,000. The company's equity multiplier is 2. The company's return on assets is 15%. What is the company's return on equity?

a) 32.50%

b) 37.50%

c) 40.00%

d) 35.00%

e) None of the above

Problem 2: A perpetuity will pay $2,120 per year. The first payment will be made 1 year from today. If you pay $19,900 for this perpetuity today, what rate of return will you earn?

a) 10.71%

b) 10.65%

c) 10.96%

d) 10.90%

e) None of the above

Reference no: EM132620847

Questions Cloud

Sociological imagination essay : Explain the sociological imagination (as if you're teaching the concept to someone completely unfamiliar with it) and Apply the sociological imagination
Differentiate the constructionist theories of deviance : Societal members dictate deviant behaviors. In this assignment, you will create a PowerPoint Presentation covering the different theories of deviant behavior.
What weights should Corporation A use for Debt capital : What weights should Corporation A use for Debt capital when calculating its WACC? Express your answers in strictly numerical terms
How you think the cost-benefit analysis affected efforts : Post an explanation for how you think the cost-benefit analysis in terms of legislators being reelected affected efforts to repeal/replace the ACA.
Find what is the company return on equity : Total assets are $1,250,000. The company's equity multiplier is 2. The company's return on assets is 15%. What is the company's return on equity?
What is the condition or disease you are interested in : Opportunity to present a potential problem and an innovative solution specific to your role specialization. In addition, you have reviewed the literature.
What is the power of compound interest : Explain what is the Power Of Compound Interest and how does it benefit long-term investors/savers? Discuss in detail and provide the example.
Unique hypothetical weighted average cost of capital : Create a unique hypothetical weighted average cost of capital (WACC) and rate of return.
How your ability to handle conflictr enhance leadership : Integrates how your ability to handle conflict can either enhance or hinder effective leadership in the health care environment. On a separate references page.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate what is elephant inc taxable income

Illustrate what is Elephant, Inc.’s taxable income for 2012? Which of the following is required to adjust Elephant, Inc.’s deferred tax asset to its correct balance at December 31, 2012? The ending balance in Elephant, Inc’s deferred tax liability at..

  Determine the value of the terminal loss or recapture

Calculate the profit margin ratio of the company and comment on the profitability performance of the company.determine the value of terminal loss or recapture

  Calculate the gross accounts receivable for the company

Calculate the following for the company: gross accounts receivable at end-x8; allowance for bad debts at end-x8 (round to nearest  000); bad debt expense recognised in x8.

  Calculating diluted eps

When calculating diluted EPS at December 31, 2013, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $9 per share during 2013? (Enter your answer in millions of shares.)

  Error be treated on the bank reconciliation

If a check correctly written and paid by the bank for $754 is incorrectly recorded in the company's books for $745, how should this error be treated on the bank reconciliation?

  What types of financial record and information would you use

How would you go about indicating to investors that all account balances are valid and free from potential errors? What types of financial records and information would you use to support your claims? Explain.

  Issue price of the bonds

Pharoah Corporation issues $560,000 of 8% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds.

  Illustrate what is the company total tax liability

Illustrate what is the company's total tax liability to both jurisdictions for each of the two alternative transfer pricing scenarios ($15 million and $20 million)?

  Evaluate the plan to skip the dividend

Metro Bus Company had $400,000 of revenue and $401,000 of expense (including depreciation) for the current year resulting in a $1,000 net loss. All revenues were received in cash. All expenses were paid in cash except for depreciation of $181,000. Ev..

  Prepare the financial statement for the business at december

Before Thinker's prepares the financial statements for the business at December 31, 2011, adjustments must be made for the following items.

  Assume that direct labor is a variable cost

Carr Company produces a single product. Last year, Carr manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows: Under variable costing, the company's net operating income for the year would be:

  Example cash flow statement and income statement

Compose example cash flow statement and income statement for a company as a nonprofit entity and as a governmental entity. Ensure all information is entered accurately and the statements are compliant with Governmental Accounting Standards

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