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ryzh [129]
3 years ago
9

The 2016 financial statements of The New York Times Company reveal average shareholders’ equity attributable to controlling inte

rest of $837,283 thousand, net operating profit after tax of $48,032 thousand, net income attributable to The New York Times Company of $29,068 thousand, and average net operating assets of $354,414 thousand.
The company’s return on net operating assets (RNOA) for the year is:
Business
2 answers:
dusya [7]3 years ago
6 0

Answer:

The formula for RNOA is net income divided by net operating assets.

29,068/354,414= 8.2%

Explanation:

aivan3 [116]3 years ago
4 0

Answer: Return on Net Operating Assets = 13.55%

Explanation:

return on net operating profits is calculated by dividing operating profits after tax by net operating assets. this ratio measures a company's performance  with regards to how well  a company uses its operating assets to generate profits. it is a good measure of a company's profitability. the return on net operating profits is used by investors  to determine how much each dollar invested in operating assets will earn and also it indicates a companies efficiency.  

RONA = Return on net Operating Assets

operating profits = 48032000

average net operating assets = 354414000

RONA = Operating profits/average operating assets

RONA = 48032000 / 354414000 = 0.13552512 = 13.55%

The return on net operating asset is 13.55% meaning a dollar invested in operating assets earns 13.55% return.

A company should measure its RONA ratio against RONA of companies in the same industry and also measure RONA ratio against  the industry's  RONA to determine whether or not the company is using its operating assets efficiently in generating earnings.

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3 years ago
Choose the best answer:
Juli2301 [7.4K]

Answer:

Option B is correct.

Explanation:

Option A is incorrect because the expected return must be greater than the marginal cost of the capital which means that the Net Present Value must be positive.

Option B is correct because the increase in cost of debt or capital would increase the weighted average cost of capital. This is because weighted average cost of capital is directly proportional to cost of capital sources.

Option C is incorrect because its not the cost of one of the capital sources, actually it is the weighted average cost of capital which when starts increasing at a point due to increase in the level of financing is known as breaking point.

So the only statement that is correct is option B.

Kindly don't forget to rate the answer. Thanks

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