What is its return on stockholders equity

Assignment Help Finance Basics
Reference no: EM132395447

Jerry Rice and Grain Stores has $4,640,000 in yearly sales. The firm earns 5.5 percent on each dollar of sales and turns over its assets 2.5 times per year. It has $153,000 in current liabilities and $364,000 in long-term liabilities.

a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

b. If the asset base remains the same as computed in parta, but total asset turnover goes up to 2.90, what will be the new return on stockholders' equity? Assume that the profit margin stays the same as do current and long-term liabilities.(Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM132395447

Questions Cloud

What is the maximum price : You expect the profit to grow indefinitely at 4% per year. What is the maximum price you recommendto be paid for the building?
HOS802 Hospitality Management Simulations- Assignment : HOS802 Hospitality Management Simulations Assignment Help and Solutions, International College of Management, Sydney- Develop trategic business plan.
Define weighted average cost of capital : Define Weighted Average Cost of Capital and explain why a company must earn at least its Weighted Average Cost of Capital on new investments.
Discuss the role of the program administrator : Describe why the video above is an important resource for program administrators. Discuss the role of the program administrator in implementing DAP.
What is its return on stockholders equity : What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Critically compare and contrast project management : Understand PMBOK knowledge areas and process groups and their role, relevance and impact on project management best practice and PMI's Code of Ethics
Calculate the value of one share of stock : Calculate the value of one share of this stock to an investor who requires a 10% rate of return and who forecasts that the company
How might the use of addictions assessment tools differ : How might the use of addictions assessment tools differ from the use of clinical assessment tools? Include in your response references to unique administration.
Assignment - Integration Problem : Assignment - Integration Problem. Prove by using complex analysis

Reviews

Write a Review

Finance Basics Questions & Answers

  Development of key skills and behavior by individual

Develop a list of 5 key skills or behaviors you will be working to improve. Tell me why you chose these skills. What is your current skill level in these areas?

  Calculate the beta portfolio

You hold a portfolio with the following securities: % of portfolio BETA Stock A 53% 1.67 Stock B 11% 1.42 Stock C please calculate 1.68

  What is a capital expenditure

In your opinion, what is 1 long-term goal of the company? Explain your answer. What is a capital expenditure?

  Show how an arbitrage profit can be made

ssume that the combined value of the puts and stock exceeds the value of the actual call by less than the present value of the exercise price.- Show how an arbitrage profit can be made.

  Identify the current competitors and industry

Identify the current competitors and industry trends of Merck and Co. that have had the mossy significant impact on the companies financial performance.

  If the cost of goods sold equaled 86 per cent of sales what

w.f. bailey company had a quick ratio of 1.4 a current ratio of 3.0 an inventory turnover of 5x total current assets of

  Distribution under a variable annuity on a variable basis

In the case of the distribution under a variable annuity on a variable basis? -the number of annuity units distributed varies with the stock market -the number of accumulation units does not change over the lifetime of the annuitant

  How much larger is the payment at the first reset date

In year 3, LIBOR is at 4%. In year 4, LIBOR is at 4.5%. How much larger (in dollars, rounded to the nearest cent) is the payment at the first reset date.

  How does this affect your answer in part a

What information does Gizmo require to decide among the three alternatives? Suppose the factory will be built in Geneva, Switzerland, rather than Toledo. How does this affect your answer in part a?

  How much is your effective annual return on the fund

You plan to purchase shares in an open-ended mutual fund. You expect the assets owned by the fund to increase by 8% per year. When you purchase the fund.

  Explain what collusion is

Explain what collusion is, with an example of how it would be used in today's corporate environment. Is collusion within an industry ethical or not ethical

  What is highest rate you can afford on a 78-month apr loan

You want to borrow $61,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,000, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78-month APR loan?

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