Firm operating return on assets and return on equity

Assignment Help Financial Management

Reference no: EM131958091

In? 2016, the Allen Corporation had sales of $ 66 ?million, total assets of $ 47 ?million, and total liabilities of $ 19 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 13 percent.

a. Compute the? firm's 2016 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.)

Reference no: EM131958091

Questions Cloud

What is tha equivalent cost per mile : A company is currently paying its employees $0.25 per mile to driv their own cars when on company business The company is considering supplying employees.

How does one employee behavior affect the organization : How do you define when an employee crosses that line? What is important about consistency? How does one employee's behavior affect the organization?

Write on how project management helps a company : Write about given topic. Topic: How Project Management Helps a Company. Saving effort and cost with proactive scope management

Appropriate step to managing and tracking issue : But due to a shutdown at the mine, the delay is indefinite until another solution can be found. What would be an appropriate step to managing

Firm operating return on assets and return on equity : Compute the? firm's 2016 net operating income and net income. Calculate the? firm's operating return on assets and return on equity.?

How much would isabel have in ten years : Isabel Lopez, age 18, recently recievedan inheritance of $50,000 from her grandmother's estate.

List the six digestive processes discussed in class : List the six digestive processes discussed in class. Using your own words, create a brief description for each.

Explain unlawful dismissal rules and due process : If managers decide that an employee's performance is so poor as to necessitate dismissal, what procedures must be instigated to comply with due process

What coupon rate do you need to set : Your company currently has 6.5% coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of $1067.

User Account

All Pages