What is the return on assets and what is return on equity
Course:- Financial Management
Reference No.:- EM131082870

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

Keller Cosmetics maintains an operating profit margin of 8.55% and a sales-to-assets ratio of 3.00. It has assets of $610,000 and equity of $410,000. Interest payments are $41,000 and the tax rate is 30%.

a. What is the return on assets? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Return on assets %

b. What is the return on equity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 Return on equity   

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
You have successfully prepared yourself for the career of your choice but the recruiters visiting your school have not offered you a job. Now you must look on your own. So by
Assume the total expense for your current year in College equals 12,000. if your parents wanted to pay this year's college costs, approximately how much would they have needed
Aspin Corporation's charter authorizes issuance of 2,000,000 shares of common stock. Currently 1,400,000 shares are outstanding and 100,000 shares are being held as treasury s
The MoMi Corporation’s income before interest, depreciation and taxes, was $2.5 million in the year just ended, and it expects that this will grow by 5% per year forever. To m
A man purchased a stock one year ago for $25. The stock is now worth $34, and the total return to Lee for owning the stock was 0.38. What is the dollar amount of dividends tha
The forward rate of the Swiss franc is $.60. The spot rate of the Swiss franc is $.50. The following interest rates exist: U.S. Switzerland 360-day borrowing rate 7% 5% 360-da
You own a wholesale plumbing supply store. The store currently generates revenues of $1.03 million per year. Next? year, revenues will either decrease by 10.5% or increase by
In what instances would an investor want to "best the market" and "hold the market"? Discuss the strategies for each and their dependence on an investor's information and trad