What is the rate of return on total assets

Assignment Help Financial Management

Reference no: EM131972723

Use the following information to answer this question. A company with the tax rate of 50 percent has $25,000 of sales and earns 10 percent or $2,500 before taxes on these sales. Its total assets are $100,000, of which $25,000 are current assets and $75,000 are fixed assets. What is the rate of return on total assets?

Reference no: EM131972723

Questions Cloud

Assumption that reinvestment of funds is at cost of capital : There was an implicit assumption that reinvestment of funds is at cost of capital, in NPV and PI models and at IRR in the IRR model.

Calculate the expected NPV : An auto plant that costs $170 million to build can produce a line of flexfuel cars. Calculate the expected NPV.

What is the current price of european put option : What is the current price of a European put option with a strike price of $29 and three month until expiration?

What is the present worth of the raise : Over a career of 40 years, what is the present worth of the raise if the present interest is 7%?

What is the rate of return on total assets : Its total assets are $100,000, of which $25,000 are current assets and $75,000 are fixed assets. What is the rate of return on total assets?

Used to evaluate individual employees of company : How can the balanced scorecard be used to evaluate individual employees of a company?

What is effective rate of interest if the loan is discounted : Effective rate on discounted loan, Sol Pine borrows $5,000 for one year at 13 percent interest. What is the effective rate of interest if the loan is discounted

The least-expensive car for your new delivery service : You are trying to pick the least-expensive car for your new delivery service. If the business has a cost of capital of 13 percent, calculate the EAC.

What is the intrinsic value of stock today : The beta is 1.5,Rfr is 5%. Market risk premium is 7.5%. What is the intrinsic value of the stock?

User Account

All Pages