What is its operating ROA

Assignment Help Financial Management
Reference no: EM131563117

A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 35%, and pays an interest rate of 5% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131563117

Questions Cloud

Present value of complex cash flows : How much do you have to deposit today so that beginning 11 years from now you can withdraw $9000 year for the next 8 years?.
What challenges might it face : Look at the Capability Maturity Model (CMM) and its five levels. As an organization moves through each level, what challenges might it face
Calculate the net present value and internal rate of return : Calculate the net present value and internal rate of return for the investment project.
How large will your annual payments be : To do this, you take out a $175000 30-year,12 percent mortgage. How large will your annual payments be?
What is its operating ROA : A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 35%, and pays an interest rate of 5% on its debt. What is its operating ROA?
Find the radius of the circular part : An architect is designing a Norman window (a semicircular part over a rectangular part) as shown in Fig. If the area of the window is to be 16 ft2.
Indifferent between acquiring and not acquiring training : At what discount rate would you be indifferent between acquiring and not acquiring the? training?
Quality decorator lamps in plant located in eastern tenness : Baryla Inc. manufactures high quality decorator lamps in a plant located in eastern Tennessee.
Write out a passage from one of the four renaissance prose : Write out a passage from one of the four Renaissance prose writers for this unit, and explain how that passage represents a clear break from the Middle Ages.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value of the annuity

A 10-year annuity pays $1,400 per month, and payments are made at the end of each month. If the interest rate is 12 percent compounded monthly for the first five years, and 8 percent compounded monthly thereafter, what is the present value of the ann..

  Security percent of portfolio return stock

You hold a portfolio with the following securities: Security Percent of portfolio Return Stock A 44% 2.0% Stock B 12% 17.3% Stock C Please calculate it 4.2%.

  What is the minimum amount of bonds it would have to borrow

Assume that Tech wants to undertake a capital investment of $1 million. What is the minimum amount of bonds it would have to issue to do so?

  Determine the stock current price

A stock is expected to pay a year-end dividend, D1, of $0.75 per share. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. Show your work in all calculations. Can the Gordon model be used in this case to det..

  Some new potato chip-making equipment

Today, Snack Foods, Inc. is investing $327,000 in some new potato chip-making equipment. The company expects the cash flows to increase by $76,000 a year for the next three years and $93,000 a year for the following two years as a result of this inve..

  Present values of all the projects incremental cash inflows

Add together the present values of all the project’s incremental cash inflows

  Preferred stocks if comparable securities yield

What should be the prices of the following preferred stocks if comparable securities yield 6.5%? Why are the valuations different? a) Santa Fe Inc $ 2 preferred Stock ( $ 25 Par) b) Cessna Inc $ 2 preferred ( $ 25 Par) with mandatory retirement in 5 ..

  Registered as required under the securities act

you discover that the company you are considering working for is not registered as required under the Securities Act of 1933.

  Sales grow before any new fixed assets are needed

Southern Mfg., Inc., is currently operating at only 86 percent of fixed asset capacity. Current sales are $820,000. How fast can sales grow before any new fixed assets are needed?

  Evaluate several proposed capital projects

The Morris Company is attempting to determine its cost of capital in order to evaluate several proposed capital projects and set its capital budget for next year. The following information has been made available: Target capital structure is 40% debt..

  What is the bond price

A bond with face value $1,000 has a current yield of 6.7% and a coupon rate of 8.7%. If interest is paid annually, what is the bond’s price?

  What is this project equivalent annual cost or EAC

A five-year project has an initial fixed asset investment of $350,000, an initial NWC investment of $38,000, and an annual OCF of -$37,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

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