Question
PLEASE EXPLAIN HOW TO CALCULATE SO I CAN LEARN HOW TO MYSELF. THANKS OFFERING 150 PTS FOR THE FIRST PART SINCE SO SHORT..THEN THE NEXT
PLEASE EXPLAIN HOW TO CALCULATE SO I CAN LEARN HOW TO MYSELF. THANKS
OFFERING 150 PTS FOR THE FIRST PART SINCE SO SHORT..THEN THE NEXT TWO 300 A PIECE AND I ALREADY FIGURED OUT MARGIN WHICH IS 3.8% FOR THE LAST PART PART A. PLEASE IGNORE THE ANSWERS THAT I PUT IN THEY ARE WRONG
A friend has $1,150 that has been saved from her part-time job. She will need her money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 4.9% interest or to lend it to Judy. Judy has promised to repay $1,182 after six months. RATE OF RETURN=AMOUNT OF RETURN/AMOUNT INVESTED..INTEREST=PRINCIPAL*RATE*TIME |
Required: | |
(a) | Calculate the interest earned on the savings account for six months. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
Interest earned | $ |
(b) | Calculate the rate of return if the money is lent to Judy. (Round your intermediate calculations and final percentage answer to 2 decimal places. Omit the "%" sign in your response.) |
Rate of return on an annual basis | % |
You have accumulated $4,950 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 7%. A one-year bank certificate of deposit will pay 9%, but the minimum investment is $7,950. |
Required: | |
(a) | Calculate the amount of return you would earn if the $4,950 were invested for one year at 7%. (Round your answer to nearest whole number. Omit the "$" sign in your response.) |
Amount of return | $ |
(b) | Calculate the net amount of return you would earn if $3,000 were borrowed at a cost of 17%, and then $7,950 were invested for one year at 9%. (Round your answer to nearest whole number. Omit the "$" sign in your response.) |
Net amount of return | $ |
(c) | Calculate the net rate of return on your investment of $4,950 if you accept the strategy of part b.(Round your intermediate calculations to nearest whole dollar amount and final percentage answer to 2 decimal places. Omit the "%" sign in your response.) |
Net rate of return | % |
ROI analysis using DuPont model [LO 3] (RETURN ON INVESTMENT=NET INCOME/SALES(*)SALES/AVG. TOTAL ASSETS. ) THE SALES/AVG. TOTAL ASSETS.. IS THE ASSET TURNOVER EQUATION..ANOTHER EQUATION GIVEN IS ROI=MARGIN(*)TURNOVER=NET INCOME/SALES(*)SLES/AVG. TOTAL ASSETS
Required: | |
(a) | Firm D has net income of $87,000, sales of $2,282,000, and average total assets of $1,399,500. Calculate the firm's margin, turnover, and ROI. (Omit the "%" sign in your response.) |
Margin | % |
Turnover | |
ROI | % |
(b) | Firm E has net income of $154,500, sales of $2,545,000, and ROI of 18%. Calculate the firm's turnover and average total assets. (Omit the "$" sign in your response.) |
Turnover | $ |
Average total assets | |
(c) | Firm F has ROI of 12.6%, average total assets of $1,739,159, and turnover of 1.2. Calculate the firm's sales, margin, and net income. (Round your answers to the nearest whole numbers. Omit the "$" and "%" signs in your response.) |
Net income | $ |
Sales | $ |
Margin | % |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started