User Account

All Pages

Calculate the expected return on assets

Assignment Help Corporate Finance
Reference no: EM132163769

Question 1:

- Use the following Data in the table below regarding to ALFA Company to calculate the Expected Return on Assets (RA).

Item  Symbol  Amount
Net Income  N.I. $350,000
Expeeted Operation Income E.O.I  $500,000
Debt  D $700,000
Equity  E $300,000
Expected Return on Equity RE 11%
Expected Return on Debt RD 9%

Question 2:
- Use the following Data in the table below regarding to COSTA Company to calculate the Financial Risk for the Company ((3A).
- Note: (this Company includes only Common Stocks in the Equity Contents)

Iterm Symbol Amount
Debt D $600,000
Equity E $400,000
Debt Risk D 10%
Market Return Rm 18%
Risk Free Rate Rf 5%
stock Return (common Stocks) RC.S 12%

Verified Expert

This assignment provides solution in regard to the calculation of return on asset and beta of asset. The return on asset is calculated on the basis of net income and total assets and beta asset is calculated on the basis of equity beta and debt beta

Reference no: EM132163769

Questions Cloud

Development experience of an asian country : Give one or two examples from the development experience of an Asian country to support economic freedom is important to economic development.
What exactly happened and what was microsoft defense : Can you please explain (in simple words!) the US vs Microsoft case, like what was it all about, what exactly happened and what was Microsoft's defense?
How you can solve the problem : Millington (2014) states that McDonald's has reported a drop in sales by 4% in the UK, which highlight that the firm is not on the same growth path as it used.
Personal industry experiences with each process strategy : Discuss the four types of process strategies and give example of each. Also, please share any personal industry experiences with each process strategy.
Calculate the expected return on assets : Use the following Data in the table below regarding to COSTA Company to calculate the Financial Risk for the Company - Calculate the Expected Return on Assets
What inspires you to succeed every day : How do you manage relationships with difficult team members? What inspires you to succeed every day?
Works for a large computer company : Sue Ellen works for a large computer company. She expects to work this period and next period, and then retire.
Present the study report with clear introduction : Analyze your selected company with micro and macro environmental forces by using SWOT analysis.
Calculate the equilibrium level of employment and wage rate : Calculate the equilibrium level of employment and wage rate if there are no immigrants.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd