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Vera_Pavlovna [14]
3 years ago
9

Selected balance sheet and income statement information for Oracle corporation follows.(required computations from the perspecti

ve of an Oracle shareholder. a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 = 12.35%) 20.8 % b. Compute return on net assets (ROA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) 9.88 % C. Compute return on net operating assets (RNOA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) ___ %
Business
1 answer:
tekilochka [14]3 years ago
8 0

Answer:

<u>(A) Compute learn on equity as follows: </u>

Return on equity = (Net income/ Average stock holders’ equity) x 100  

Return on equity = $9,938 / $47,771

Return on equity = 20.8%

Average stock holders’ equity = (48,663 + $46878)/ 2

Average stock holders’ equity = $47,771

<em>Therefore, Return on equity is 20.8% </em>

<u>(B) Compute return on vet assets as follows: </u>

ROA = (Net income / Average total asset) × 100

ROA = ($9,938/100,585) × 100

ROA = 9.88%

Average total asset = (110,903 + 90,266) / 2  

Average total asset = $100,585

<em>Therefore, Return on net assets is 9.88% </em>

<u>(C) Compute return on net operating assets as follows: </u>

Return on net operating assets = (Net Operating income after tax / Average operating assets) × 100

Return on net operating assets = ($9,938 + 1,037) × 100 / 53,991

Return on net operating assets = ($10,975 / $53,991) × 100

Return on net operating assets = 20.33%

Average Operating assets = ($56,535 + 51,447) / 2

Average Operating assets = $53,991

<em>Therefore, Return on net operating assets is 20.33% </em>

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krok68 [10]

Answer:

c. The systematic risk of a portfolio can be effectively lowered by adding T-bills to the portfolio.

Explanation:

If we want to less the systematic risk of the portfolio so we have to add the t-bills so that the systematic risk could be minimized

The other statements that are mentioned are incorrect as for risk these statements are wrong

So only c option would be considered as correct

Hence, the correct option is c.

7 0
3 years ago
As the use of the Internet grows around the world, there must be as easy an exchange of ideas and information as possible betwee
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c. societal culture and norms

Explanation:

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7 0
3 years ago
the common stock and debt of northern sludge are valued at $64 million and $36 million, respectively. investors currently requir
kozerog [31]

The expected return on the common stock should decrease.

To calculate the new expected return on the common stock, we need to calculate the new value of the common stock and debt. The new value of the common stock is $64 million + $16 million = $80 million. The value of the debt is reduced by $16 million to $20 million.

The new expected return on the common stock is 16.6% * ($80 million/$96 million) = 15.63%.

Therefore, the expected return on the common stock should decrease from 16.6% to 15.63%.

A security that symbolises ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.

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4 0
1 year ago
"Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $522,000, a 3
Vlad [161]

Answer:

$31,320.00

Explanation:

The formula for accounting rate of return is the annual net cash flow divided by the initial investment.

If the initial investment was $522,000 and the accounting rate of return is computed to be 6% per year, hence the annual increase in cash flow accruing from the investment can be calculated by changing the subject of the formula.

ARR=annual increase in cash flow/initial investment

ARR is 6%

initial investment is $522,000

annual increase in cash flow?

6%=annual increase in cash flow/$522,000

annual increase in cash flow=6%*$522,000= $31,320.00  

4 0
3 years ago
Hicks health clubs, inc., expects to generate an annual ebit of $505,000 and needs to obtain financing for $1,080,000 of assets.
STatiana [176]
<span>they were rich in resources and thinly settled</span>
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