How much asset turnover should manufacturer

Assignment Help Financial Management

Reference no: EM131955477

1. Which do you prefer: a bank account that pays 8% per year (EAR) for three years or:

(i) An account that pays 4% every six months for three years?

(ii) An account that pays 12% every 18 months for three years?

(iii) An account that pays 0.8% per month for three years?

2. Manufacturer A has a profit margin of 2.2%, an asset turnover of 1.7 and an equity multiplier of 5.0. Manufacturer B has a profit margin of 2.5%, an asset turnover of 1.2 and an equity multiplier of 4.7. How much asset turnover should manufacturer B have to match manufacturer A's ROE?

A) 1.59% B) 3.18% C) 2.23% D) 1.27%

Please explain in details,

Reference no: EM131955477

Questions Cloud

What information is in your open quadrant with your partner : What insights can you draw from this? How did information move from your Hidden quadrant to your Open quadrant, or from your Blind to Open quadrant?

Identify the strengths of the criminal behavior theories : Which theory do you think is most applicable to the cause of criminal behavior today and why? Support your answer.

Analyze the fundamental reasons why brands do not exist : Analyze the fundamental reasons why brands do not exist in isolation but do exist in larger environments that include other brands.

What would the venue be for this scenario : In this assessment, you will analyze and evaluate the following scenario from the perspectives of an attorney and a judge.

How much asset turnover should manufacturer : How much asset turnover should manufacturer B have to match manufacturer A's ROE?

How was the change received and what was the outcome : Who led and managed the change? How was the change received and what was the outcome? Provide suggestions to deal with resistance.

Relationship between resistance and capacitance : If resistance and current increase, the capacitance also increase? what is the relationship between resistance and capacitance with that?

Summarize demographics of the crime : You are working on a news piece identifying how theories of crime explain specific crimes including the demographics of perpetrators and victims.

Prepare the journal entry for the purchase of the land : BUSI 3423 Prepare the journal entry for the purchase of the land. Prepare any adjusting journal entry that is required at the end of the fiscal year.

User Account

All Pages