16. Your assistant gathered the following financial data for Japan: The realrisk-free rate is 3%. Inflation is expected to be 2% this year and 4% duringthe next 2 years. What is the required return on 2-year Treasury bondsecurities? Since the maturity is only 2 years we will assume that nopremium should be required for the maturity risk. *a) 6%O b) 8%O c) 6.33%O d) 8.33%O e) None of the above 15. Segma Corp's total assets at the end of last year were $622,500 and itsnet income was $49.125. What was its return on total assets? *O a) 7.89%O b) 12.67%O c) 14%O d) 8.9%O e) None of the above

Since you have asked multiple questions i.e. Question 15 and Question 16, we will solve the first…

Answered: 15. Segma Corp's total assets at the…

15. Segma Corp's total assets at the end of last year were $622,500 and its net income was $49.125. What was its return on total assets? * a) 7.89% O b) 12.67% O c) 14% d) 8.9%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 11PROB

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Question

16. Your assistant gathered the following financial data for Japan: The real
risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during
the next 2 years. What is the required return on 2-year Treasury bond
securities? Since the maturity is only 2 years we will assume that no
premium should be required for the maturity risk. *
a) 6%
O b) 8%
O c) 6.33%
O d) 8.33%
O e) None of the above

15. Segma Corp's total assets at the end of last year were $622,500 and its
net income was $49.125. What was its return on total assets? *
O a) 7.89%
O b) 12.67%
O c) 14%
O d) 8.9%
O e) None of the above

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