4. Nick's Bird Cages has sales of $43 million, total assets of $29 million, and total debt of $9.5 million. If the profit margin is 8 percent, what is net income? What is ROA? What is ROE? Make sure to show your work.
Q: Given an interest rate of 8 percent, compute the year 8 future value if deposits of $2,000 and…
A: Interest rate = 8% Year 2 cash flow = $2,000 Year 3 cash flow = $3,000 Year 5 cash flow = - $725…
Q: 771 APR = (1+) -1
A: Loans are paid by the monthly payment and they are charged on the basis of monthly interest rate but…
Q: respectively
A: C is risk-free so Beta =0, Take Wa as the Weight of A in the portfolio= 12000/50000=0.24 Weight…
Q: Consider a loan of $88,000 at 4% compounded annually. (a) the payment necessary to amortize the loan…
A: When we take a loan we make periodic payments towards that loan. The periodic payments will…
Q: Company A has a beta of 0.9 , while Company B's beta is 1.4 . The market risk premium is 13.78 %,…
A: The Capital Asset Pricing Model (CAPM) illustrates the relationship between systematic risk, or the…
Q: 9 A deposit of $720 earns interest rates of 8 percent in the first year and 11 percent in the…
A: Deposit amount (P) = $720 Interest rate in year 1 (r1) = 8% Interest rate in year 2 (r2) = 11%
Q: How much more is a perpetuity of $1,500 worth than an annuity of the same amount for 20 years?…
A: Solution:- When an equal amount is received each period at end of period, it is called ordinary…
Q: What is the present value of a $1,450 payment made in seven years when the discount rate is 10…
A: Future value (FV) = $1,450 Discount rate (r) = 0.10 Period (n) = 7 years Present value = ?
Q: Q8) (1%) Suppose that on 27 October 2022, Wall Street Journal in New York presents the following…
A: We have all the information to obtain the no arbitrage price of the call option using Black Scholes…
Q: What happens to the coupon rate of a $1,000 face value bond that pays $70 annually in interest if…
A: The coupon rate is a fixed-interest rate that attempts to estimate the coupon payment associated…
Q: The present value of a 6-year annuity is X. The annuity pays 5 at the end of the first month, 10 at…
A: Annuity are a series of payments being made at a regular period. Growing annuity with arithmetic…
Q: On 4/1/22, Little Inc. borrowed funds on a 9%, one-year note to finance the construction of a new…
A: Given: 4/1/22 Borrowed funds Construction started = 5/1/22 Construction Completed =9/1/22
Q: hich of the following would not be acceptable as a measure of basic investment risk? a)Expected…
A: Risk is always there when you invest in stock returns and risk is volatility of returns and change…
Q: vestor has R50,000 to invest A, B and C. R12,000 will be invested into asset A. The beta for asset A…
A: Beta of portfolio is the weighted beta of individual beta of the stocks in the portfolio and beta…
Q: 1. Find the Yield to Maturity (YTM) for the following government bonds 98.45 2.50% Price Semi-ann…
A: Bartleby honor code states that when multiple questions are asked by student, the expert is required…
Q: . How do rising interest rates affect the size of real estate loans that lenders will advance?
A: The central bank of a country changes the interest rates intermittently to control inflation or…
Q: urn on Hilo stock is 15.05 percent while the expected return on the market is 13.3 percent. The…
A: The CAPM capital assets pricing model gives the required rate of return of the stock based on the…
Q: A change in the risk premium, E(Rm) - Rf, results in... Group of answer choices 1. A change in…
A: concept. security market line (SML) gives the market’s expected return at different levels of…
Q: Assuming the cost of mortgage is $400,000, and the wner of the house makes a down payment of…
A: Mortgage $ 4,00,000.00 Down Payment $ 40,000.00 Interest Rate 8% Time Period (Years) 10
Q: Bond 1 Bond 2 Bond 3 Bond 4 Face Value Maturity (years) £100 £1000 £100 £100 3 4 2 5 Yield 5% 3% 2%…
A: Here, Bond Face value Maturity (years) Yield Coupon rate No. of compounding periods No. of…
Q: purchased
A: , But the profit is the net income earned by the investor. Given the stock price at the time of…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Optimal risky portfolio is one which gives the highest risk to reward ratio and lies on the tangent…
Q: Use the Black–Scholes formula to value the following options:a. A call option written on a stock…
A: Use these to find the call price and the put price. Step-1. Given Spot Price S =72, Strike Price X…
Q: MV Corporation has debt with market value of $102 million, common equity with a book value of $96…
A: Market value of debt = $102 million Market value of preferred stock = $20 million Market value of…
Q: Consider a $4,400 deposit earning 9 percent interest per year for 9 years. What is the future…
A: Compound interest is the interest on savings calculated on both the initial principal and the…
Q: Q 32 What's the present value, when interest rates are 8.5 percent, of a $225 payment made every…
A: Solution:- When an equal periodic payment is made forever, it is called perpetuity. We know, Present…
Q: A new automated checkout system costs $400,000 and will be depreciated straight-line to zero over a…
A: Given The cost of machine is $400,000 Life is 5 years Tax rate is 24%
Q: You own 100 shares of stock. It will pay (per share) $10 dividend in year 1, $25 dividend in years…
A: We have to first find the price of the stock. Then we have to use the concept of homemade dividends…
Q: choosing to invest in these three stocks: Stock A) Beta=1.1 return standard deviation = 25% Stock B)…
A: Solution:- Beta measures the sensitivity of stock’s return with reference to market. It measures the…
Q: a Ltd and Omega Ltd are identical in all aspects except their capital structures. Alpha Ltd is 100%…
A: Debt is very important sources of finance for the companies and it has very much lower cost and it…
Q: An investor shorts 1,000 shares of XYZ.com, a security eligible for reduced margin, at $48. The…
A: Margin is the amount of equity in an investor's brokerage account. To "margin" or "buy on margin"…
Q: 7. John and Yuki want to buy a three-bedroom semi-detached house that currently sells for $725900.…
A: Given: Cost of house = $725,900 Property taxes = $3,500 Down payment rate = 12%
Q: An investor invested 2 200 euros in an inde the same time the consumer price index has climbed from…
A: Inflation and interest rate are quite related to each other. The return on investment depends on the…
Q: Compute the present value of an $1,200 payment made in 9 years when the discount rate is 11 percent.…
A: Future value (FV) = $1,200 Discount rate (r) = 0.11 Period (n) = 9 years Present value = ?
Q: Rachel purchased a car for $22,000 three years ago using a 4-year loan with an interest rate of 10.8…
A: The concept of time value of money will be used here. We will have to determine the monthly payments…
Q: In 2022, Miranda records net earnings from self- employment of $158,500. She has no other gross…
A: Self-employed people and small company owners who do not otherwise pay withholding taxes are subject…
Q: XYZ Manufacturing Corporation currently has production equipment that has 4 years of remaining life.…
A: Net Investment (NINV) is the total cost incurred at time "0" to start the project or buy the…
Q: A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the balance on monthly…
A: Given: Particulars Amount Down payment 200,000 Down payment rate 10% Monthly…
Q: he company we work for wi ceiving payments from cust uring this year in dollar, as p ble below…
A: The payments are received from the company and some time they are lesser and sometime they are more…
Q: Which of the following OOO OOOOOOOOOOOOOO FORM Select one: XOX O a. In a perfect market, the cost of…
A: Leasing is a contract in which one party agrees to rent the property to the other party following…
Q: The capital structure of a local fruit and vegetable grower trading as Metsimotlhabe produce is…
A: Total capital of the firm = Long term bonds + Preferred stock + Common stock = 4000000 + 3000000 +…
Q: IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed ¥210 million…
A: Exchange rate are volatile in nature and change quickly in the market depending upon the supply and…
Q: QUESTION 8 Auto Loans R Them loans your $24,000 for four years to buy a car. The loan must be repaid…
A: Annual payments or periodic payments on a loan can be calculated using the PMT Function in excel.…
Q: A sum of money was invested on December 12, 2021 at 3.7% simple interest pa. When the money was…
A: Simple interest is the interest paid on the amount invested without compounding.
Q: What annual rate of return is earned on a $5,000 investment when it grows to $10,250 in five years?…
A: Investment (P) = $5,000 Accumulated amount (A) = $10,250 Period (n) = 5 Years
Q: Below are the NPVs of a particular investment at two discount rates: At 5%, NPV = $9,500 At 8%,…
A: IRR is the rate of return at which the net present value is 0. IRR is the minimum return a project…
Q: The two most pressing demands for liquidity from a bank come from, first, customers withdrawing…
A: Liquidity in banking refers to the capacity or the ability of the banks to give cash to customers on…
Q: economy booms RTF, Inc stock is expected to return 13 percent. If the economy goes into a…
A: There are different possibilities of the economy and depending on the economy the company can earn…
Q: Determine the project's NPV if the Profitability Index is 0.4; and the investment value is $500,000.…
A: Net present value(NPV) of the project is calculated using following equation Profitability index =…
Q: The Kroger Company is evaluating an investment project that will convert a vacant lot in Virginia it…
A: In a typical capital budgeting project, we have to find all the incremental and relevant costs and…
Step by step
Solved in 4 steps
- DTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?5. Anderson Inc. has sales of $17.6 million, total assets of $13.5 million, and total debt of $6.2 million. If profit margin is 5.2%, what is net income? What is ROA? What is ROE?Calculating Profitability Ratios. Aorangiwai River Boats has sales of $15 million, total assets of $9 million, and total debt of $3.7 million. If the profit margin is 7%, what is net income? What is ROA? What is ROE? LO 3.2
- Buttack Eyes, Inc., has sales of $19 million, total assets of $15.6 million, and total debt of $6.3 million. If the profit margin is 8 percent, what is net income? What is ROA?PLease show Solutions for a guide. 1. A firm total sales is 156,000 this year. If the cost of sales is 55% . What is the amount of gross profit? 2. If the firm above earned a profit of 39,000 . How many percent of total sales is the net profit? 3. Compute for the operating expenses of the firm 1 and 2. How many percent of the total sales are the operating expenses?Mari Mari Berhad has sales of RM29,000, total assets of RM17,500, and total debt of RM6,300. If the Net Profit Margin is 9%; a) What is the Net Income ? b) What is the Return on Asset ? c) What is the Return on Equities ?
- Please show work and explain answer 5. Decorative Paintings has total debt of $69,000, total equity of $445,000, and a return on equity of 10 percent. What is the return on assets? 6. If the equity multiplier for a firm is 4, what is the debt ratio for that firm?Using the simple equation on an Income Statement, what is your Net income if your Revenue was $929,000; and your Mortgage payment was $260,000; and your Utilities were $45,000; and your Employee expense w,as $352,000 [Show your math equation]3. (a) Debt is 20% of assets for an organization. Total assets are$10,000. The tax rate is 40%. The interest rate is 10%. EBIT profit is$1000. What is the after taxes and interest profit? What is the ROE?Profit_______________ROE________________(b) If in 1(a) debt is increased to 50% of assets, what will be the aftertaxes and interest profit and the ROE?Profit__________________ROE___________________
- Answer this questions: 1. If the revenue is Php 94,810 and total expenses are Php 80,537, what is the net income? 2. If sales are equal to Php 600,480 and the costs of goods sold is equal to Php 374,789, what is the gross profit/margin? 3. If the company B has Php 1.048,150 liabilities, how much is its equity? 4. Given the following information, compute for the operating profit/margin: GROSS SALES: Php 600,480 COSTS OF GOODS SOLD: Php 374,789 TOTAL OPERATING EXPENSES: Php 132,916 5. A company's total investements Php 1,500,000. If Return on Investments is 35% , how much is the net profit after taxes?1. Suppose you are given the following information for Bayside Bakery: sales = $30,000; addition to retained earnings = $4,221; dividends paid = $469; interest expense = $1,300; tax rate = 30 percent. What is the EBIT?Using Table 6–13, create a pro forma balance sheet using the percentage of sales method. If net income next year is $50,000, answer the following: How much did the owners take out of the business? What is the profit margin for next year?