(Analyzing operating returns on assets) in 2015, Noble Corporation earned an operating profit margin of 15 percent and realized a total assets turnover ratio of 2. a) What was Noble's operating return on assets in 2015? b) In 2015, if the sales were $1and are expected to increase by 50 percent in 2016, other things being equal, what will be the total assets turnover value in 2016? c) Assuming the firm's opearting profit margin remains the same over the two years, how will a 50 percent increase in sales affect the operating return on assets in 2016?
(Analyzing operating returns on assets) in 2015, Noble Corporation earned an operating profit margin of 15 percent and realized a total assets turnover ratio of 2. a) What was Noble's operating return on assets in 2015? b) In 2015, if the sales were $1and are expected to increase by 50 percent in 2016, other things being equal, what will be the total assets turnover value in 2016? c) Assuming the firm's opearting profit margin remains the same over the two years, how will a 50 percent increase in sales affect the operating return on assets in 2016?
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 7EP
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(Analyzing operating returns on assets) in 2015, Noble Corporation earned an operating profit margin of 15 percent and realized a total assets turnover ratio of 2.
a) What was Noble's operating
b) In 2015, if the sales were $1and are expected to increase by 50 percent in 2016, other things being equal, what will be the total assets turnover value in 2016?
c) Assuming the firm's opearting profit margin remains the same over the two years, how will a 50 percent increase in sales affect the operating return on assets in 2016?
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