What is the firm''s roa, A firm has a profit margin of 15

What is the firm''s roa

Reference no: EM131407339

A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA?

a. 8.4%

Reference no: EM131407339

Questions Cloud

Calculate the expected return of the portfolio : Which of the following stock would you expect to give a return higher than the market? Explain your answer.

Create a spreadsheet model using excel and risk : Create a spreadsheet model using Excel and Risk to find the Net Present Value and Internal rate of Return for the investment.

What conclusion would be reached : The average U.S. family includes 3.17 persons.- Using a nondirectional hypothesis test and a level of significance of your choice, what conclusion would be reached?

What is the current market value of elite''s bond : Eleven years ago, Elite Elements issued a 15-year bond with a $1,000 face value and a 5 percent coupon rate of interest (paid semiannually). If investors require a return equal to 7 percent to invest in similar bonds, what is the current market va..

What is the firm''s roa : A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA?

How does a natural law approach to legal rules : "A bad law is still a law, just as a bad political decision is still a political decision." Can that claim form part of a sound argument against natural law theory? How does a natural law approach to legal rules help answer the question: "why ough..

Is capitalism or socialism the better economic system : How does a centrally planned socialist economy solve the what, how, and for whom to produce problems?

How to calculate exponential modulo : How to calculate Exponential Modulo. As well as its application in RSA encryption/decryption?

What will be the resulting percentage change in ebit : Assume that current level of sales is 362 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by 6.5 percent? (You should calculate the degree of operating leverage first)

User Account

All Pages