In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover

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In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover of 2.

a. Calculate the operating return on assets in 2015.

b. If the sales were $1 million in 2015 and are expected to increase for 50 percent in 2016, other things being equal, what will be the total asset turnover value in 2016?

c. Assume the operating profit margin remains the same. How will a 50 percent increase in sales affect the operating return on assets in 2016?

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: Feb 21, 2024 05:00 AM

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In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover

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a Operating return on assets OROA Operating profit margin x Total asset turnover OROA 15 x 2 30 b T...View the full answer

Foundations Of Finance

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