Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please explain step by step! 7.- Company X presents the following operating accounts corresponding to two consecutive periods (expressed in euros): Year 0 Sales.... .200.000

image text in transcribed

please explain step by step!

7.- Company X presents the following operating accounts corresponding to two consecutive periods (expressed in euros): Year 0 Sales.... .200.000 Raw material... Personnel expenses.. Financial expenses.. .18.000 50.000 .15.000 Posili ve year result.... 117.000 Year 1 Sales.... 264.000 Raw material.. Personnel expenses.. Financial expenses. 18.000 58.300 .10.000 .......... Positive year result.. .........177.700 We also know that the company's total assets were worth 1,000,000 for year 0 and 1,200,000 for year 1. The cost of capital dropped from 10% to 5% over the period considered. Calculate the cconomic and financial return and the type of leverage for both periods. 8.- Company A has reported the following data: Revenue 100,000 Raw material costs: 20,000 Personnel expenses: 30.000 Financial expenses: 4.000 Financial return. 20% Cost of debt capital: 10% Calculate the company's economic rate of return and the type of leverage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Accounting Vol 1

Authors: Dr S. Kr. Paul, Prof. Chandrani Paul

1st Edition

164725146X, 9781647251468

More Books

Students also viewed these Accounting questions

Question

Explain why derivatives are zero-sum games.

Answered: 1 week ago