Why the return on equity ratio is so much less favorable

Assignment Help Finance Basics
Reference no: EM13275116

Explain why the return on equity ratio is so much less favorable than the return on assets ratio compared to the industry Return on asset 12% Industry 5 % Return on equity 16% Industry 20%.

Reference no: EM13275116

Questions Cloud

Evaluate the normalization constant for the eigenstates : Find the energy eigenstates for the system. Compute the normalization constant for these eigenstates. What is the boundary condition for this problem. What does this restrict the allowed energies of the system to be? e) What is the degeneracy of t..
What is the value of the firm current liabilites : A firm's balance sheet shows current assets of $410, net fixed assets of $685, long-term debt of $320, and owners' equity of $590. What is the value of the firm's current liabilites?
Desgin a four-bit combinational circuit 2s complenmter : desgin a four-bit combinational circuit 2's complenmter.(the output generate complement of the input binary). then construct truth table for the input and correspondinf output. use kmap to find each outpt in terms of of inputs.
Find transfer function between motor voltage and pressure : The fluid travels through a conduit of negligible resistance; an accumulator is included to smooth out the pulsations of the pump. A hydraulic load (modeled by a fluid resistance R) is connected between a pipe and a reservoir (assumed at zero pres..
Why the return on equity ratio is so much less favorable : Explain why the return on equity ratio is so much less favorable than the return on assets ratio compared to the industry Return on asset 12% Industry 5 % Return on equity 16% Industry 20%.
Which is observed at that point : Young's double slit experiment arrives at a point on the screen one-half wavelength behind the wave from the other slit, which is observed at that point?
What is the cost of common from retained earnings : Based on the DCF approach, what is the cost of common from retained earnings? Answer 11.10% 11.68% 12.30% 12.94% 13.59%
Find the values of the distributed parameters le and c : A coaxial line consists of inner and outer conductors made of copper and having radii of a = 0.65 mm and b = 2.75 mm. The space between the conductors is filled with polyethylene (er=2.25). Find the characteristic impedance Z0
What is cost of equity raised by selling new common stock : What is the cost of equity raised by selling new common stock? Answer 10.77% 11.33% 11.90% 12.50% 13.12%

Reviews

Write a Review

Finance Basics Questions & Answers

  Impact on equation of accounting or journal entries

Record these transactions and any other required adjusting entries by showing their impact on the fundamental equation of accounting or journal entries.

  Estimate the current cost of quity

How much of the capital budget must be financed by common equity to maintain the optimal capital structure? How much of the new funds are generated by new debt? By new stock?

  Compute imiotek''s weighted average cost of capital

Compute Imiotek's weighted average cost of capital.  Calculate the net present value if Innotek was to continue production of the SMR HDD locally.

  Controlled group rules for two corporate employers

the two corporate employers be treated as one employer under the controlled-group rules

  What annual rate of interest is your friend offering

A friend promises to pay you $1,000 two years from now if you lend hime $800 today. What annual rate of interest is your friend offering?

  Calculate the corporate tax

The agency problem can seriously restrain the economic success of a corporation. What avenues are available to shareholders to bring their aims and those of organization into alignment?

  What would be the tax paid on a new project

Suppose that a firm has a marginal tax rate of 44% and an average tax rate of 33%. What would be the tax paid on a new project that will contribute an additional $7409 to the firm's cash flow?

  Reported significant earnings increases in nearly every qua

In late 2010, you purchased the common stock of a company that has reported significant earnings increases in nearly every quarter since your purchase.

  Discuss components of a complete grant proposal

How can you convince the funder of your need for funding? What are some tips in developing a well-written needs statement?

  Compute cost of preferred stock

Hettenhouse Corporation's perpetual preferred stock sells for $102.50 per share, and it pays a $9.50 annual dividend. If the corporation were to sell a new preferred issue,

  Users of financial information

Differentiate between the different users of financial information.

  Determination of best alternative

Suppose you are offered two jobs. One initially pays $100,000 annually, and your salary will grow annually at 11.5 percent. The other pays $97,000 yearly but your salary will grow at 12%.

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