Solution-What is the rate of return on total assets

What is the rate of return on total assets

Assignment Help Accounting Basics

Reference no: EM133121821

Question - 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?

a. 13.40%

b. 12.25%

c. 14.66%

d. 17.22%

d. 18.33%

Reference no: EM133121821

Questions Cloud

Required rate of return on the market : Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 8.00%, and the risk-free rate is 4.30%. What is the required rate of return on the mark

How many ml should the child receive : The healthcare provider prescribes amoxicillin 80 mg PO 8 hours for a child who weigh 25 pounds. How many mL should the child receive

Gross working capital and net working capital : Explain the difference between gross working capital and net working capital

Compute the ear for investment choice : You have found three investment choices for a? one-year deposit: 12% APR compounded? monthly, 10% APR compounded? annually, and 8% APR compounded daily.

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

Advantage of the club management offer : The annual Exercise Club membership fees of $1250 are due on October 17, 2018. Club management offers a reduction of membership fees of 18.6% p.a. to members wh

Integrative-risk and valuation : Giant Enterprises' stock has a required return of 13.8%. The company, which plans to pay a dividend of $2.21 per share in the coming year, anticipates that its

Differences between a closed-end investment company : 1. List and explain the differences between a closed-end investment company and a mutual fund and give the sources of return from an investment in a closed-end

What one-year ahead pe ratio : What one-year ahead P/E ratio is consistent with PTO's expected return and earnings growth rate? Answer to two decimal places.

User Account

All Pages

What is the rate of return on total assets

Reference no: EM133121821

Reference no: EM133121821

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT