Find what is the rate of return on equity of the company

Assignment Help Accounting Basics
Reference no: EM132724537

Problem 1: A company has total assets worth €3.5 million, interest expenses equal to €40,000, and pays an average interest rate of 11 percent. EBIT is equal to €500,000. What is the rate of return on equity of this company?

Reference no: EM132724537

Questions Cloud

Workforce issues on patient safety : Exploring the rate of seasonal-pattern depression in an Inuit community. Democracy in America. Evaluating technology with student success
Research systems development life cycle : Research a systems development life cycle of your choice.
What will be the degree of financial leverage : The average interest rate will be 8 percent. Total assets will be equal to €6,000. What will be the degree of financial leverage? Interpret the result.
Calculate the amount of interest jason : Today is January 1, 2021. Jason borrows from Jessica $239,037 and agrees repay her by monthly installments. Payments will increase at a rate of 0.5% per month.
Find what is the rate of return on equity of the company : A company has total assets worth pays an average interest rate of 11 percent. EBIT is equal to €500,000. What is the rate of return on equity of this company?
Determine the costs assigned to the December : Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method
Complete picture of her holistic health : What are three additional questions you would want to ask her in order to have a more complete picture of her holistic health?
Should the plan be accounted for as a fiduciary fund : Should the plan be accounted for as a fiduciary fund, just as if the city managed the fund itself? The City of Acton maintains a defined contribution pension
Primary forms of portfolio analysis management : What are the primary forms of portfolio analysis management?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture 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!

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