Purchase Solution

Return on total assets

Not what you're looking for?

Ask Custom Question

Use the following data from a firm's pro forma (i.e., projected or forecasted) financial statements to calculate the following profitability ratios for the firm, assuming that all stocks are common stocks:(a) net profit margin; (b) return on total assets; (c) return on equity; (d) price-earnings ratio. Sales $150 million Net income 12 million Total Assets 600 million Stockholders' Equity 200 million Number of Common Stock Shares 4 million Price per share of common stock $50.00.

Purchase this Solution
Solution Summary

Response helps in estimating return on total assets.

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Return on equity

    Return on equity = Net Income/Total equity Multiply by Total assets/Total assets After rearranging, return on equity = (Net income/ Total equity)*(Total assets/Total assets ) Return on equity = (Net income /Total assets) (Total assets / Total equity

  • Return on assets

    Return on equity. Equity /Total Assets= 1- (debt/total assets) =1-.6 =.4 or 40% Hence ROE= Net Income/equity =Return on Assets*Total Assets/Equity =12.5%*1/.4 =31.25%=Answer 2.

  • Financial statement analysis

    Net income= $90,000 (Given) Return on assets = Net income / Total Assets = 20% (Given) Therefore, Total Assets = Net income / Return on assets= $450,000 =$90,000/20.% c) Total Asset Turnover Sales=

  • Thomas Lane Company: calculate return on equity and return on equity ratio

    48269 calculate return on equity and return on equity ratio The Thomas Lane Company has a return-on-assets (investment) ratio of 12 percent. a. If the debt-to-total-assets ratio is 40 percent, what is the return on equity? b.

  • Return on Common Equity vs Total Assets

    142419 Return on Common Equity vs Total Assets Would you anticipate that a firm's Return on Common Equity would be smaller or larger than that same firm's Return on Total Assets?

  • Singular Corp.: Return on Assets

    .: Return on Assets See the attached file. 1 .

  • Du Pont Method Effect on Equity

    to return on equity if the debt-to-total-assets ratio decreased to 40 percent?

  • Net Profit Margin and Other Ratios

    Total asset turnover (use year-end assets) 3. Return on assets (use year-end assets) 4. Operating income 5. Return on operating assets (use year-end assets) 6. Sales to fixed assets (use year-end fixed assets) 7.

  • Return on assets using Dupont Equation

    1) What would be the return on total assets of a firm if net income is $50,000 , total sales are $100,000 , and total assets are $175,000 ? Return on Assets is the net income generated from the use of assets.

  • Calculate Clayton's profit margin and debt ratio step by ste

    Sales/total assets 1.5 Return on assets 3% Return on equity 5%

View More Related Solutions