What is return on equity

Assignment Help Financial Management
Reference no: EM131354063

Reliable Cars has sales of $4,010, total assets of $3,250, and a profit margin of 5 percent. The firm has a total debt ratio of 42 percent. What is the return on equity?

Reference no: EM131354063

Questions Cloud

Expenditures for debt service increased significantly : The data that follow were drawn from the CAFR of the city of Boulder, Colorado. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a ten-year period. Comment on any changes between..
Calculate return on common equity for fiscal : Do you think financial managers should develop a strategic plan for their company? Why? Calculate return on common equity (ROCE) for fiscal X6 and X7. Disaggregate ROCE into net operating profit margin, net operating asset turnover and leverage.
Equivalent unlevered cost of equity : The Monongahela Valley Manufacturing Company has $750 debt outstanding with pretax cost of 6% and its common stock has a value of $1,250. The required return on equity is 14.34%. The firm faces a corporate tax rate of 35%. What is Monongahela’s equiv..
The property was sold at foreclosure sale for more money : Robert and Sherrell Bergeron gave a first mortgage on their property to First Colonial Bank and a second mortgage to Ford Motor Credit Company. When the Bergerons were unable to pay the mortgage, the bank foreclosed. The property was sold at a forecl..
What is return on equity : Reliable Cars has sales of $4,010, total assets of $3,250, and a profit margin of 5 percent. The firm has a total debt ratio of 42 percent. What is the return on equity?
Determine the equilibrium price of european call : Suppose XYZ stock is trading at S0= $101, ?u= ?1.02, d=?1/1.02, the period risk free rate is 1%, and the stock pays no dividends. Using the n-period BOPM, determine the equilibrium price of an XYZ 100 european call expiring at the end of the third pe..
Arbitrageur cash flow would be at expiration when he closed : Consider a one period two-state case in which XYZ stock is trading at S0= $35 and has ?u of 1.05 and d ?of 1/1.05, and for which the period risk free rate is 2%. Using the BOPM, deterine the equilibrium price of an XYZ 35 European call option expirin..
Financing and operating plan for current year : Apply the final two steps of the nine-step assessment process detailed in Assessing A Company’s Future Financial Health (i.e., Step 8: Stress Testing and Step 9: Financing and Operating Plan for Current Year) to compose further assessment of the comp..
Smaller concluding withdrawal at the end of the next year : You just received a $18000 bonus check! You deposit it in an account which earns 9.25% compounded annually. How many full withdrawals of $4500 at the end of each year can be made? What is the amount of the smaller concluding withdrawal at the end of ..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the value of one share in tented

Tented plc has developed a new tent which has had great reviews in the camping press. The company paid a dividend of 10p per share recently and the next is due in one year. Dividends are expected to rise by 20% percent for the next five years while t..

  Software games company avalanche entertainment

Software games company Avalanche Entertainment is considering expanding its highly successful online game franchise to either the board game or trading card environment. The company has decided that it will invest in one project but not both. The ..

  Calculate the value of your savings at end of three years

You plan to save $500 at the end of each month for the next 2 years. With the expectation of a pay raise, you want to save $850 at the end of each month for 1 year after that. Assuming an interest rate of 1.5% per annum throughout the period of calcu..

  Calculate the amount of the firms gross profit

Evening Story Corporation has sales of $4944222; income tax of $571164; selling, general, and administrative expenses of $282528; depreciation of $306623; cost of goods sold of $2520358; and interest expense of $188280. Calculate the amount of the fi..

  The income statement shows net income

Fly Away, Inc., has balance sheet equity of $5.3 million. At the same time, the income statement shows net income of $763,200. The company paid dividends of $431,208 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 17, what i..

  What are current interest rates on 1year certificates

What are the current interest rates on 1-year certificates of deposit at a commercial bank and a credit union located near you?

  What is the return that an investor would have earned

Suppose an investor bought a call option for $2.39 on a single share of Beatnik Designs Co. with a strike price of $35.00 when the firm's stock traded at $36.24. Suppose the stock price had fallen to $34.23. Indicate the return that a stock investor ..

  Call protection-bond will probably not be called

It is now Januery 1, 2010 and Bill Nilas is considering the purchase of an outstanding $1,000 par bond that was issued on Januery 1, 2006. It has a 6 percent annual coupon and had a 10-year original maturity. It has 5 years of call protection (from t..

  Debt and capital budgeting target capital structure

Baxter Metalworks Inc. has the following elements of capital. Debt: Baxter issued $1,000, 30-year bonds 10 years ago at a coupon rate of 9%. Five thousand bonds were sold at par. Similar bonds are now selling to yield 12%. Preferred stock: Twenty tho..

  What is the annual dollar amount of interest

Assume that three years ago you purchased a corporate bond that pays 6.0 percent. The purchase price was $1070. What is the annual dollar amount of interest that you receive from your bond investment?

  What value should be used as the weight of equity

A firm has 12,500 shares of stock outstanding that sell for $42 each. The book value of equity is $400,000. The firm has also issued $250,000 face value of debt that is currently quoted at 101.2. What value should be used as the weight of equity when..

  Invested in risk-free security and stock

You own a $30,000 portfolio that is invested in a risk-free security and Stock A. The beta of Stock A is 1.80 and the portfolio beta is 1.20. What is the amount of the investment in Stock A?

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