A ratio that is becoming more widely used is return on investment. Return on investment is calculated
Question:
A ratio that is becoming more widely used is return on investment. Return on investment is calculated as net income divided by long-term liabilities plus equity. What do you think return on investment is intended to measure? What is the relationship between return on investment and return on assets?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
Longterm liabilities and equity are investments made by inv...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Corporate Finance questions
-
What do you think McNerney should do as an overall scheme?
-
What do you think happened to inflation expectations between 2007 and 2009 and why?
-
What do you think about U.S. consumers paying more for light trucks and SUVs because of this?
-
Find r(t) and v(t) given a(t) and the initial velocity and position. a(t) = (t, 4), v(0) = (3,-2), r(0) = (0,0)
-
Suppose you bought a ticket in a lottery that requires you to select 6 distinct numbers between 1 and 40 inclusive. a. How many different selections are possible? b. What is the probability of...
-
Explain the physical phenomenon that the total temperature of a system remains unchanged and the total pressure decreases. Explain a physical phenomenon in which the total temperature and total...
-
Refer to Exercise 9. Compute the value of the test statistic. Exercise 9 Two suppliers of machine parts delivered large shipments. A simple random sample of 150 parts was chosen from each shipment....
-
Autotech Manufacturing is engaged in the production of replacement parts for automobiles. One plant specializes in the production of two parts: Part #127 and Part #234. Part #127 produced the highest...
-
1. Describe how the Child Care Early Years Act (CCEYA) supports the principles that guide high-quality early learning care. 2. Upon completion of the CCEYA self-test, reflect on how this exercise...
-
The file P17_19.xlsx contains various data on 325 metropolitan cities in the United States. Cell comments in row 1 explain some of the variables. A Microsoft Data Mining add-in (not discussed here)...
-
Consider the ratio EBITD/ Assets. What does this ratio tell us? Why might it be more useful than ROA in comparing two companies?
-
Nuber Company has a debt equity ratio of .80. Return on assets is 9.7 percent, and total equity is $ 735,000. What is the equity multiplier? Return on equity? Net income?
-
If a publicly traded company is trying to maximize its perceived value to decision makers external to the corporation, the company is most likely to report too small a value for which of the...
-
Two black plates of which the height and width are 0.5 m and 1.0 m are placed as given below. One plate is maintained at 1000 and the other at 500 . What is the net radiant heat exchange between the...
-
Calculate the payback and NPV for a project with a $100,000 initial cost, cash inflows of $35,000 per year for 4 years, and a discount rate of 12%?
-
1.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. a. Compound Amount Term of Investment Nominal Rate (%) Interest...
-
Overcoming barriers and finding strengths: The lives of single mother students in university https://library- archives.canada.ca/eng/services/se C rices-libraries/theses/Pages/item.aspx?...
-
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $93 million on January 1, 2024. The bonds mature on December 31, 2033 (10 years). For bonds of similar risk and maturity,...
-
True or false: The main drawback with conventional approaches to benchmarks for parallel computers is that the rules that ensure fairness also slow software innovation.
-
A bubble-point liquid feed is to be distilled as shown in Figure. Use the Edmister group method to estimate the mole-fraction compositions of the distillate and bottoms. Assume initial overhead and...
-
Consider a general closed-loop unity feedback control system shown in Figure 5.34, where \(K\) is the controller gain and \(G(s)\) is the plant Transfer Function model. Using simple rules, sketch the...
-
Under standard accounting rules, it is possible for a companys liabilities to exceed its assets. When this occurs, the owners equity is negative. Can this happen with market values? Why or why not?
-
Under standard accounting rules, it is possible for a companys liabilities to exceed its assets. When this occurs, the owners equity is negative. Can this happen with market values? Why or why not?
-
Suppose a companys cash flow from assets is negative for a particular period. Is this necessarily a good sign or a bad sign?
-
A small object with a charge of q = 10.0 C travels from the origin to the point (x, y) = (20.0 cm, 50.0 cm) in the presence of a uniform electric field E = 2401 V/m. Determine the following. (a) the...
-
You have a battery marked "6.00 V." When you draw a current of 0.213 A from it, the potential difference between its terminals is 5.09 V. What is the potential difference AV when you draw 0.551 A? AV...
-
An elevator, initially at rest, starts moving upwards at constant acceleration and eventually reaches speed 8.24 m/s at time t= 6.26 s. It travels at constant speed until time t= 24.36 s. The...
Study smarter with the SolutionInn App