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.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much did Paul received from James as full payment

On January 1, 2021, Paul Corp sold merchandise with a list price of P100,000 to James on account. How much did Paul received from James as full payment

  What steps would take to conduct investigation

What information would you need to develop a fraud theory? Does the information you currently have provide sufficient predication for an investigation?

  What is the value of barron finished goods inventory

Using absorption costing, what is the value of Barron's finished goods inventory at the end of the year

  Discuss implementing the proposed changes

Prepare budgeted income statements for each of the months of April, May, and June that show the expected results from implementing the proposed changes

  Total undiscounted cash flow in the final year

What is the total undiscounted cash flow in the final year of an investment, assuming: $10,000 after-tax cash flows from operations, the fully depreciated machine is sold for $1,000, the project had required $2,000 in additional working capital, a..

  What a baker does and discuss business activities

HA2042ACCOUNTING INFORMATION SYSTEMS Assignment. Define business processes - What a Baker does? Discuss the business activities/processes of the organisation to show your understanding about the business

  On june 1 2009 national equipment rental leased equipment

on june 1 2009 national equipment rental leased equipment to the glendale community club and craig legal services.

  What amount of gain did Carr recognize from this transaction

Adams, Beck, and Carr organized Flexo Corp. with authorized voting common stock of $100,000. What amount of gain did Carr recognize from this transaction

  Summarize the recent proposal that you researched

Summarize the recent proposal that you researched. Compare and contrast the pros and cons of the proposal, and recommend whether or not the proposal should be adopted.

  Compute the mad of forecast errors

Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. Compute the MAD of forecast errors

  How many units must be sold to reach target operating income

If the sale price per unit is $100, variable expenses per unit are $45. How many units must be sold to reach the target operating income?

  How much will the account be worth years from today

$1,763.00 into and account 3.00 years from today into an account that earns 6.00%. How much will the account be worth 13.00 years from today?

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