Explain an example how to calculate rate of return on total assets.

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

Q: Identify the cash flow series associated with production or service over thelife of the asset?

A: Definition: Cash inflows: The amount of cash received by a company from the operating, investing,…

Q: Which capital investment methods require the use of a present value table?

A: Net Present Value: It is a measure of profitability for a project used primarily in capital…

Q: How is the value of an asset determined by predicted future cash flows?

A: The Answer

Q: Describe term net asset value (NAV)?

A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…

Q: In a theoretical sense, the financial value of any asset is the present value of:

A: The Answer

Q: What will be the accumulated amount in an investment account

A: As per the concept of the Time value of money, today’s money value has more valuable than tomorrow.…

Q: What is return on assets(roa)?

A: In general terms, ROA is similar to  Return on Investment.

Q: Explain how the cost of capital serves as a screening tool when using the net present value method.

A: Definition: Net present value method: The net present value method is the method that is used to…

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: Asset utilization ratios describe how capital is being utilized to buy assets

A: Assets refer to the resources that the company owned in the organization and utilized for the…

Q: what is return on assets?

A: Return on Assets (ROA):- It is an indicator of how profitable a company is relative to its total…

Q: Distinguish between the following measures of invested capital, and briefly explain when each should…

A:

Q: Define Long term assets and Short term assets? What are the differences between the two?

A: Long-term assets:Long-term assets are non-current assets that can benefit for several years.…

Q: What is a capitalization rate? What are the different ways of arriving at this rate for an…

A: Capitalization rate: Capitalization rate is the projected rate of return percentage that a property…

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

Q: Define return on total assets.

A: Financial Ratios:   Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: why we need to know the difference between fixed and current assets?

A: Solution:- Fixed assets :- The term fixed asset refers to a long-term tangible piece of property or…

Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…

A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired…

Q: Define Asset turnover ratio.

A: Definition:   Asset turnover: This ratio analyzes the number of times sales or revenue generated…

Q: What is return on assets (roa ) ?? please comment own word.

A: Ratio analysis is based on the fact that a single accounting figure by itself may not communicate…

Q: Explain how the cost of capital may be used as a screening tool when applying the net present value…

A: Net present value: Net present value is a the increment return from an investment after covering the…

Q: Define a financial asset

A: A contractual financial instrument is classified into financial assets and liabilities. They are an…

Q: Explain an example how to calculate net present value.

A: Net present value method:   Net present value method id the method which is used to compare the…

Q: the assets' risk is the asset returns a

A: Step 1   Covariance is a statistical measure of how two assets move concerning each other. It…

Q: Describe the Investment-Credit Decision—A Cash Flow Perspective.

A: Answer: Every lender and borrower shall have their own conditions based on their needs and wishes.…

Q: How can the Calculation of capital-recovery cost (with return)be done?

A: Capital Recovery Cost: When a company purchases or invest in some assets for the business…

Q: Determine Total Assets value?

A: Introduction: Assets: Any resource having monetary value called as Assets. Assets are of two types…

Q: Explain an example how to calculate accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: Explain return on total assets (ROA)

A: Those resources that are owned by the company and have economic value is term as the assets. The…

Q: What does it mean to adopt a maturity matching approach to financing assets, including current…

A: Current assets financing policies are strategies which focus on finding the best method of financing…

Q: Explain the difference between capital assets, capital investments, and capital budgeting.

A:

Q: Explain the significance of time value of money in financial valuation?

A: Time value of money means the value of a sum of money in future is not the same as the value of…

Q: Explain return on assets (ROA)

A: The formula to compute return on asset as follows:

Q: how the returns on assets co-move?

A: Convergence means the movement of price of future contract towards spot price. The two price must…

Q: Return on Total Assets

A: Return on Investment: Return on Investment is a measure of how well the company is performing using…

Q: Describe the principles of asset valuation. Distinguish between the required rate of return and…

A: Asset Valuation means that a company or business is studied to understand what will be the intrinsic…

Q: explain the unique characteristics of the asset class, their associated risks and potential returns.…

A: The investments can be made using different assets basing on the risk capability and investment…

Q: Analyze the rate ofreturn on assets

A: Accounting ratio:   It is a number expressed in terms of another to establish relationship among…

Q: What do the Asset management ratios measure?

A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…

Q: Define the term, the return on invested capital (RIC)?

A: All investments are made keeping focus on the expected returns that can be generated from it. The…

Q: Explain how the cash flows are structured in order to estimate thenet advantage to leasing

A: Net advantage to leasing (NAL) refers to the overall financial savings that might probably result…

Q: How is the value of any asset whose value is based on expected future cash flows determined?

A: Answer: When there is a sequence of expected future cash flows, cash flow method is one of the best…