What is the absolute return to assets

Reference no: EM132081100

Question: 1. Total assets end of the year - $200.000, Net Farm Income = $23.000, Interest Expense -SI 5.000, and Leverage ratio =1.5

Calculate owner equity

Calculate Liabilities

Calculate the rate of return on equity and the cost of farm debt

What is the absolute return to assets and the rate of return to assets?

2. Farm assets = $1.200,000. and the cost of debt 7.75%. The fanner's initial investment in the farm was $200,000, and since then the farm has generated $50,000 in accumulated profits. What are the ROE and the ROA during the period since the farmer's initial investment? What is the fanner's interest expense?

Reference no: EM132081100

Questions Cloud

Purchasing modern technology in hospital environment : What challenges occur with purchasing modern technology in a hospital environment?

Examine ethical issues related to the audit function : Write a 750-word essay on the selected topic and examine its importance with respect to ethical behavior. Your essay must cite at least 2 scholarly sources.

Write a matlab script to generate the coordinates of each : Each mouse travels towards its closest neighbor (in a counterclockwise direction) at a constant speed. The paths that the mice take form spiral curves.

Calculating the variance of project completion time : When calculating the variance of a project's completion time,

What is the absolute return to assets : Total assets end of the year - $200.000, Net Farm Income = $23.000, Interest Expense -SI 5.000, and Leverage ratio =1.5. What is the absolute return to assets.

The utilitarianism concept in resolving moral dilemma : What is the advantage and disadvantage of the utilitarianism concept in resolving a moral dilemma?

What is beginning purchase differential created in worksheet : Toni Company is an 80 percent subsidiary of Nathan Industries. At the acquisition date (January 1, 20x5), Toni Company's plant assets (net) had a book.

Marketing campaigns among rival brands that you can recall : What are some of the more bitter marketing campaigns among rival brands that you can recall?

Compute the break-even in miles : Top Motor Corporation is projecting average revenue of $4.00 per mile and variable costs of $3.50 per mile for the year 2015.

User Account

All Pages