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Marat540 [252]
2 years ago
7

Ondren Machine Tools has total assets of $3,930,000 and current assets of $829,000. It turns over its fixed assets 3.8 times per

year. Its return on sales is 6.5 percent. It has $1,280,000 of debt.
What is its return on stockholders’ equity?
Business
2 answers:
Katarina [22]2 years ago
6 0

The return on stockholders’ equity is 28.90%.

<h3>How to calculate the stockholders’ equity?</h3>

Total Assets 3930000

Less: Total debt 1280000

Total Stockholders' equity 2650000

Total assets 3930000

Less: Current assets 829000

Fixed Assets 3101000

Total Assets 3930000

Less: Total debt 1280000

Total Stockholders' equity 2650000

Total assets 3930000

Less: Current assets 829000

Fixed Assets 3101000

Fixed Assets 3101000

X Fixed Assets turnover 3.8

Total revenue 11783800

Total revenue 11783800

X Return on sales 6.50%

Net income 765947

Net income 765947

Divide by Total Stockholders' equity 2650000

Return on stockholders’ equity 28.90%

Learn more about equity on:

brainly.com/question/25847981

#SPJ1

exis [7]2 years ago
3 0

Machine Tools has total assets of $3,930,000 and current assets of $829,000. It turns over its fixed assets 3.8 times per year. Its return on sales is 6.5 percent. It has $1,280,000 of debt.

What is its return on stockholders equity

= 2,650,000 dived total stockholders equity

= 28.90% return on stockholders equtiy

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The expected return on Natter Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and
AysviL [449]

Answer:

d. The stock price is expected to be $54 a share one year from now.

Explanation:

Using dividend discount model(DDM), find next year's dividend;

P0 = D1/ (r-g)

50 = D1/(0.14-0.08)

50 = D1/ 0.06

Multiply both sides by 0.06 to solve for D1;

50 *0.06 = D1

3 = D1

Next, year's dividend is $3

Dividend yield = D1/P0;

= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.

Next year's price; P1 = P0(1+g)

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7 0
3 years ago
In year 1, nominal GDP for the United States was $2,250 billion and in year 2 it was $2,508 billion. The GDP deflator was 72 in
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Explanation:

GDP Deflator = Nominal GDP / Real GDP * 100

year 1

Real GDP = $2250 billion/72*100

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year 2

Real GDP = $2508 billion/79*100

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Real GDP rose by = Real GDP (2nd year) - Real GDP (1st year)

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Therefore, The Real GDP rose by 1.6%.

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One of the disadvantages of issuing stock is that
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One of the disadvantages of issuing stock is the fact that it dilutes the earnings for shareholders.

The more shares there are, the less earnings.  

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3 years ago
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