During the past twelve months, the XYZ Corporation had an operating income of P3,920,000. What is the return on investment if the amount of the investment is P28,000,000? 12% 14% 16%
Q: Alpha Engineering invested $30 million in a project that has a D-E mix of 65-35. Determine the…
A: Return on equity (ROE) refers to the evaluation of the profitability of a company through the…
Q: Blaser Corporation had $1,017,000 in invested assets, sales of $1,284,000, operating income…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: If IT Company has a 10% ROS, income of P5,000, and an investment turnover of 4 times, divisional…
A: The accounting ratios are the accounting tools for evaluation of firm's performance in…
Q: Red Company has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40…
A: Interest expenses = $10,000 Sales = $1,000,000 Tax rate = 40% Net profit ratio = 6% Profit before…
Q: The Best Manufacturing Company is considering a new investment. Financial projections for the…
A: Capital budgeting: It is a method of evaluating the projects which required huge investments and…
Q: Blaser Corporation had $1,022,000 in invested assets, sales of $1,250,000, operating income…
A: Return on investment = Operating income / Average investment where, Average investment = (Beginning…
Q: The profit margin for Mason Corporation is
A: Profit Margin: It is a measure of profitability for the business. Higher the ratio, the better the…
Q: Blaser Corporation had $1,092,000 in invested assets, sales of $1,214,000, income from operations…
A: Return on investment = Income from operation / Average investment where, Average investment =…
Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 24%.…
A: Operating income: Operating income refers to the income earned from the day-to-day operations. It is…
Q: Mason Corporation had $1,182,000 in invested assets, sales of $1,298,000, operating income amounting…
A: Investment turnover: This ratio gauges the operating efficiency by quantifying the amount of sales…
Q: Mason Corporation had $1,046,000 in invested assets, sales of $1,280,000, operating income amounting…
A: Residual income of the business means, income over and above its, minimum desired rate of return.
Q: The Best Manufacturing Company is considering a new investment. Financial projections for the…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…
A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…
Q: Mason Corporation had $1,164,000 in invested assets, sales of $1,298,000, operating income amounting…
A: Definition: Investment turnover: This ratio gauges the operating efficiency by quantifying the…
Q: 1)Blaser Corporation had $1,029,000 in invested assets, sales of $1,264,000, income from operations…
A: Return on investment = Income from operations / Invested assets
Q: Avocado Company has an operating income of $100,800 on revenues of $1,013,000. Average invested…
A: Return on Investment is a ratio that shows the relationship between net profit and the cost of…
Q: Mason Storm Inc. has a profit margin of 16% based on revenues of $400,000 and an investment turnover…
A: Residual income is the income which is in excess of the net operating income less a charge of…
Q: Strickler Technology is considering changes in its working capital policies to improve its cash flow…
A: The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures…
Q: The Prentice Paint Company earned a Net Profit margin of 20% on revenues of $20million this year.…
A: Solution :. (Amounts in $ million) Revenue. 20.00 Net…
Q: Mason Corporation had $1,170,000 in invested assets, sales of $1,211,000, operating income amounting…
A: Profit margin = Operating income / Sales
Q: Foreman Publishing Company’s income for the most recent quarter was $500,000, and the averagenet…
A: Residual income is nothing but the excess income in a particular department over the opportunity…
Q: If a company has a return of investment of 12% and a capital of ₱ 1,500,000, what is the company's…
A: Company's profit = Capital x return of investment %
Q: A firm produces $85 million of net income on $1,250 million of assets. Investors expect a 5 percent…
A: Net income = $85 million Capital assets = $1,250 million Expected return = 0.05 or 5% Economic…
Q: A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40…
A: Solution: The times interest earned ration is a measure to determine company's ability to meet its…
Q: Mason Corporation had $1,027,000 in invested assets, sales of $1,215,000, operating income amounting…
A: Investment turnover: The investment turnover ratio compares the revenues produced by a business to…
Q: Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25…
A: Return on assets is equal to net income divided by total assets.
Q: What is the projected level of revenue in 3 years for a company with current revenues of $48.25…
A: given, pv = $48.25 million r=8.6% n=3 years continous compounding
Q: What is the working capital requirement of a company with the following average figures over a year?…
A: Working capital refers to the amount required for day-to-day operations. It is calculated by…
Q: The Fleming Manufacturing Company is considering a new investment. Financial projections for the…
A: net operating income =Revenue-cost of goods sold
Q: The following information relates to A Co for the last financial year. Revenue $200 million Asset…
A: We have the following information: Revenue: $200 million Asset turnover: 10 times Interest payable:…
Q: A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its…
A: Return on investment is the ratio that shows the percentage return earned on the investment made by…
Q: For the period just ended, Trek Corporation's Trailer Division reported profit of $54 million and…
A: Return on investment (ROI) = Operating income / Invested capital Residual income = Operating income…
Q: A company had the following results last year: sales, $700,000; return on investment, 28%; and…
A: Operating income = sales x margin % = $700,000 x 8% = $56,000
Q: A firm has an average investment of $20,000 during the year. During the same period, the firm…
A: EVA is Known as Economic Value Added it re present the Economic profit which was earned in excess of…
Q: Humphrey Hotels’ operating income (EBIT) is P40 million. The company’s times interest earned (TIE)…
A: In terms of accountancy, assets are the business items which provides benefit over a long period of…
Q: Blaser Corporation had $1,090,000 in invested assets, sales of $1,277,000, operating income…
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: A company has a capital employed of $200,000. It has a cost of capital of 12% per year. Its residual…
A: We have the following information: Capital Employed: $200,000 Cost of Capital: 12% per year…
Q: Last year, Triangular Resources earned $4.6 million in net operating income and had an operating…
A: Total Assets Turnover ratio= RevenueAverage Total Assets Operating Profit Margin = Net Operating…
Q: Mason Corporation had $1,162,000 in invested assets, sales of $1,265,000, operating income amounting…
A: The profit margin is evaluated after dividing the net income as a numerator by the total sales as a…
Q: Newtown Propane currently has $645,000 in total assets and sales of $1,720,000. Half of Newtown’s…
A: Calculate the additional assets required as follows: Additional assets required = Assets * Growth…
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- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Blaser Corporation had $1,022,000 in invested assets, sales of $1,250,000, operating income amounting to $250,000 , and a desired minimum return on investment of 14%. The return on investment for Blaser Corporation is Round the percentage to one decimal place. a.16.0% b.24.5% c.29.4% d.20.0%Mason Corporation had $1,124,000 in invested assets, sales of $1,284,000, operating income amounting to $238,000, and a desired minimum return on investment of 13%. The profit margin for Mason Corporation is a.21.2% b.18.5% c.13.0% d.87.5%
- Alpha Engineering invested $30 million in a project that has a D-E mix of 65-35. Determine the return on the company’s equity, if the net income is $4 million from revenue of $6 million.Mason Corporation had $1,027,000 in invested assets, sales of $1,215,000, operating income amounting to $236,000, and a desired minimum return on investment of 15%. The investment turnover for Mason Corporation is a.0.95 b.1.42 c.1.77 d.1.18Mason Corporation had $1,164,000 in invested assets, sales of $1,240,000, income from operations amounting to $243,000, and a desired minimum return of 12%. Round your answer to two decimal places. The investment turnover for Mason Corporation is a.1.07 b.0.85 c.1.28 d.1.60
- You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $3.35 million this year. Depreciation, the increase in net working capital, and capital spending were $295,000, $125,000, and $535,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company has $19.5 million in debt and 400,000 shares outstanding. You believe that sales in Year 5 will be $45.5 million and the price-sales ratio will be 2.15. The company’s WACC is 8.6 percent and the tax rate is 22 percent. What is the price per share of the company's stock?You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2,850,000 this year. Depreciation, the increase in net working capital, and capital spending were $225,000, $90,000, and $415,000, respectively. You expect that over the next five years, EBIT will grow at 16 percent per year, depreciation and capital spending will grow at 21 percent per year, and NWC will grow at 11 percent per year. The company has $15,100,000 in debt and 345,000 shares outstanding. You believe that sales in five years will be $22,600,000 and the price-sales ratio will be 2.4. The company’s WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock?You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $3,110,000 this year. Depreciation, the increase in net working capital, and capital spending were $238,000, $103,000, and $480,000, respectively. You expect that over the next five years, EBIT will grow at 19 percent per year, depreciation and capital spending will grow at 24 percent per year, and NWC will grow at 14 percent per year. The company currently has $17.7 million in debt and 370,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 8.5 percent and the tax rate is 24 percent. What is the price per share of the company's stock?
- The company earned a revenue of Php 70,500 at the end of the third year but then decreases geometrically by 15% per year through year 20. Assume that the company invested Php 150,000 before the start of the business. Determine the present worth equivalent of all the revenues during this 20-year time period at an interest rate of 10% per annum and Internal Rate of Return (In percentage) of this investment and What will be the Future equivalent and annual worth equivalentof all the revenues during this 20-year time period? Answer in 2 decimal places.It was reported last week that Blue Bell Enterprises earned $18.5 million this year. The report also stated that the firm’s return on equity is 11 percent. The firm retains 80 percent of its earnings. What will next year's earnings be? Round to the nearest whole dollar.A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its residual income is P 36,000. What is the company’s return on investment? a. 30% b. 12% c. 18% d. 22%
