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Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25 percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat of return on asset in percentage? a. 6.53 Ob. -8.04 Oc 6.4 d. 7.44 O e. -7.14 Of None is correct

Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25 percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat of return on asset in percentage? a. 6.53 Ob. -8.04 Oc 6.4 d. 7.44 O e. -7.14 Of None is correct

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 12P: Bayani Bakerys most recent FCF was 48 million; the FCF is expected to grow at a constant rate of 6%....
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Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25 percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat of return on asset in percentage? a. 6.53 O b. -8.04 Oc 6.4 O d. 7,44 e. -7.14 Ot None is correct
Transcribed Image Text:Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25 percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat of return on asset in percentage? a. 6.53 O b. -8.04 Oc 6.4 O d. 7,44 e. -7.14 Ot None is correct
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