Home Demo reported the following results. Sales $ 95 billion Net income $ 8 billion Average total assets $ 42 billion (a) Compute Home Demo's return on assets. (b) Is Home Demo's return on assets better than the 11% return of Lows Hardware (a competitor)?
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Home Demo reported the following results.
| Sales | $ 95 | billion |
|---|---|---|
| Net income | $ 8 | billion |
| Average total assets | $ 42 | billion |
(a) Compute Home Demo's return on assets.
(b) Is Home Demo's return on assets better than the 11% return of Lows Hardware (a competitor)?
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- You are provided with the following sample observations relating to historical rate of returns and their corresponding probabilities for individual assets, Brad and Ford: Brad Ford Obs E(RB) Prob 1 -0.03 0.01 2 0.07 0.09 3 0.10 0.10 4 0.11 0.20 5 0.02 0.05 6 0.15 0.25 7 0.08 0.05 8 0.09 0.10 9 0.12 0.10 10 0.05 0.05 Obs E(RF) Prob 1 -0.01 0.01 2 0.10 0.09 3 0.15 0.10 4 0.20 0.20 5 0.08 0.05 6 0.25 0.25 7 0.13 0.05 8 0.09 0.10 9 0.11 0.10 10 0.06 0.05 Required: Based on the following information (Note: You can use Microsoft Excel functions to…I got the net income from the income statement. For the average current assets, do I need a value from the previous year to get the average or can I just use the total asset value from that balance sheet?Need answers ASAP... It approximates the present value of what will be received through ownership of the property, including the time value of money. a. Fair value b. Salvage value c. Market value d. Book value
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