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ra1l [238]
2 years ago
14

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together i

nformation in order to release a financial report. You have found the return on equity to be 16.1 percent. Sales were $1,780,000, the total debt ratio was .31, and total debt was $657,000. What is the return on assets (ROA)
Business
1 answer:
oee [108]2 years ago
7 0

Answer:

11.11%

Explanation:

The computation of the return on assets is given below:

But before that following calculations need to be done

Total assets = Total debt ÷ Total debt ratio

= $657,000 ÷ 0.31

= $2,119,354.839

Total equity = Total Assets - Total Debt

= $2,119,354.839 - $657,000

= $1,462,354.839

Net profit = Total equity × Return on equity

= $1,462,354.839 × 0.161

= $235,439.129

And, finally

ROA = Net profit ÷ Total Assets

= $235,439.129 ÷ $2,119,354.839

= 11.11%

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A firm's bonds have a maturity of 10 years with a $1,000 face value, a 9 percent semiannual coupon, are callable in 5 years at $
Sladkaya [172]

Answer:

Yield to maturity is 3.94%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 9% = $90/2  = $45 semiannually

Selling price = P = $1080

Number of payment = n = 10 years x 2 = 20

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $45 + ( 1000 - 1080 ) / 20 ] / [ (1,000 + 1080 ) / 2 ]

Yield to maturity = [ $45 - 4 ] / 1040 = $41 /1040 = 0.394 = 3.94%

4 0
3 years ago
True or false: No gain or loss is reported when treasury stock is reissued because GAAP does not consider transactions between a
trapecia [35]

Answer:

true

Explanation:

GAAP does not allow gains or losses to be reported when a corporation reissues its treasury stock.

3 0
2 years ago
There are five basic steps to personal financial planning and their related tasks. Arrange these steps and examples of related t
svp [43]

Answer:

B. Evaluate your financial health. Record all expenses for a month to compare income and expenses.

D. Define your financial goals. Pay off credit​ card(s) by the end of this school term.

A. Develop a plan of action. Develop a budget matching income and projected expenses for the remainder of this academic year.

E. Implement the plan. Reduce expenses in problem areas so amounts do not exceed budgeted projections.

C. Review progress on the​ plan, reevaluate the​ plan, and revise the plan or start over with a new one. Based on this​ year, develop a revised budget for next year based on projected income and expenses.

Explanation:

The five basic steps of financial planning are evaluate, define, develop, implement, and review, or EDDIR for short. It basically by knowing your current position and defining how you want to be in the future. Then you must develop a plan and try to implement that plan. After some prudent time, you should go back and review if the plan was successful or not.

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3 years ago
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Talja [164]

The correct answer is: Weight

May the Talos guide you

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3 years ago
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<span>Because it focuses on processes that transform data into useful information, structured analysis is called a Process centered technique
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