User Account

All Pages

What is the return on equity

Assignment Help Finance Basics
Reference no: EM131101175

Reliable Cars has sales of $3,970, total assets of $3,050, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity?

  • 12.20 percent
  • 15.87 percent
  • 8.47 percent
  • 6.51 percent
  • 11.03 percent

Reference no: EM131101175

Questions Cloud

Which machine should the company use : After 4 years, the machine must be replaced. Machine B costs $15 million and realizes after-tax inflows of $3.5 million per year for 8 years, after which it must be replaced. Assume that machine prices are not expected to rise because inflation will ..
How much would the value of the company increase : the company's cost of capital is 12 percent. By how much would the value of the company increase if it accepted the better project (plane)?
What are the two projects'' irrs at these same costs : a. What are the two projects' net present values, assuming the cost of capital is 5%? 10% ? 15% ? b. What are the two projects' IRRs at these same costs ofcapital?
Listen to the pod-cast in this link : THEN COMPOSE A SHORT PIECE EXPLAINING YOUR ANSWER TO EACH QUESTION BELOW, minimum one paragraph or ten (10) sentences.  No fragments.:
What is the return on equity : Reliable Cars has sales of $3,970, total assets of $3,050, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity?
What is the irr of each alternative : a. What is the IRR of each alternative? b. What is the present value of costs of each alternative? Which method should be chose.
After-tax component cost of debt : Stern Manufacturing issued a 10-year, 12% semiannual bond 5 years back. The debt issue is currently priced at $925. The firm's marginal tax rate is 39%. What is Stern's after-tax component cost of debt?
Analyze political legal and regulatory risks : Analyze the following risks in your paper: (a) Political, legal, and regulatory risks (b) Exchange and repatriation of funds risks (c) Competitive risk assessment (d) Taxation and double taxation risks (e) Physical and environmental challenges to ..
Will the desire to own a top-of-the-line apple phone win : However, the largest population centers and the areas for the highest growth potential appear to be in Asia, Africa and South America. These areas may favor Samsung because it has a larger line of cheaper products that are more affordable to the m..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the bond maturity

Yield to maturity. A (n)14-year bond for katy corp has a market price of $950 and par value of $1,000.If the bond has an annual interest rate of 9 percent, but pays semiannually.What is the bond maturity.

  What is the expected year-end dividend

Wald Inc's stock has a required rate of return of 13%, and it sells for $95 per share. Wald's dividend is expected to grow at a constant rate of 7% per year. What is the expected year-end dividend, D1?

  Welker products sells small kitchen gadgets

Welker Products sells small kitchen gadgetsfor $15 each. The gadgets have a variable cost of $4 per unit, and WelkerProducts' fixed operating costs are $220,000 per year. Welker Products' capitalstructure includes 55% debt and 45% equity. Annual inte..

  What is the function of a mutual fund

What is the function of a mutual fund? Why are mutual funds popular among investors? How does a money market mutual fund differ from a stock or bond mutual fund?

  Bank a charges 11 compounded monthly on its auto loans bank

you want to make a car-loan to buy a new car and you have two choices. bank a charges 11 compounded monthly on its

  International trade agreements eliminate trade barriers

international trade agreements eliminate trade barriers between countries promote investments infuse competitiveness

  Calculate the dollar amount of each deposit

Today, your investment account has a balance of $3,000. Exactly one year before you made a onetime deposit into the account.

  The hiring decision depends on your recommendation on the f

You have been interviewed for an investment consultant position. The hiring decision depends on your recommendation on the following problem that a client has brought to the firm. The client, Mr. Majors, wants to invest in bonds. He must choose betwe..

  Find the internal rate of return of a two-year investment

Find the internal rate of return of a two-year investment that, for an initial payment of $1,000, generates a revenue of $500 at the end of the first year, and a revenue of $300 at the end of the second year.

  Calculate overall debt to equity and financing debt

Calculate overall debt to equity and financing debt to equity for each of the last six years. Explain the trend of changes in the company's capital structure.

  Common stock valuation

Common stock valuation

  The costs of goods sold

A company had the following data for the most recent year (in millions). The new CFO believes that the company could improve its working capital management sufficiently to bring its NWC and CCC up to the benchmark companies' level without affe..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd