Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Gas Stations, Inc., expects sales to rise from $1,660,000 to $1,860,000 next year. Mr. John considers that net assets (Assets – Liabilities) will symbolize 65 percent of sales. His firm has 8 percent return on sales and pays 20 percent of profits out as dividends.

(a) What result will this growth have on the funds? (Negative amount must be indicated by the minus sign.)

(b) If dividend payout is only 10 percent, what result will this growth have on the funds?

2) The Classic Group has equity of $421,000, sales of $792,000, and the profit margin of 6 percent. Determine the return on equity?

i) 8.87 percent
ii) 6.19 percent
iii) 11.29 percent
iv) 10.27 percent
v) 9.37 percent

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914193

Have any Question? 


Related Questions in Basic Finance

What is the firms goal with regard to cash collections

What is the firm's goal with regard to cash collections? Describe each of the following types of collection systems: a. Field-banking system b. Mail-based collection system c. Electronic system.

How many variance and covariance terms does the expression

How many variance and covariance terms does the expression of variance on a 5 asset portfolio have?

1 what are the risks of global investment2 how can a

1. What are the risks of global investment? 2. How can a derivative security be used to hedge portfolio risk?

Identify general-purpose statements and communication

Identify general-purpose statements and communication objectives for several situations. Read the following situations and write a general-purpose statement and a specific communication objective-the results you want-for ...

Directions update the data with your recommendations for

Directions: Update the data with your recommendations for the blue cells, then use Solver to determine the minimum variance portfolio Choose the index for each asset class, type the name below and paste in the relevant r ...

Listed below is a list of how long it takes for bands on

Listed below is a list of how long it takes for bands on stage to complete their first song (in seconds). 538 312 327 309 344 313 318 315 325 331 312 314 What is the mean time it takes for bands on stage to complete thei ...

Question 1 when viewing the terms special returns or

Question 1. When viewing the terms "special returns" or "abnormal returns," we know this can refer to _____. the Efficient Market Hypothesis gains in excess of the market risk-adjusted average convertibles and warrants, ...

Find data to decide whether to open a store-you have been

Find data to decide whether to open a store:- You have been asked to determine the feasibility of opening a frozen yogurt store in Greenville, North Carolina. Answer the following questions, using the latest figures avai ...

1 describe in your own words the techniques that scientists

1. Describe in your own words the techniques that scientists use to help them avoid drawing statistically invalid conclusions. 2. What is a statistically significant result? What is the relationship among statistical sig ...

1 what factors should an investor consider when trying to

1. What factors should an investor consider when trying to decide whether to dispose of a property that he has owned for several years? 2. What causes the marginal rate of return to change over time? How can the marginal ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro