Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25 percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat of return on asset in percentage? a. 6.53 Ob. -8.04 Oc 6.4 d. 7.44 O e. -7.14 Of None is correct
Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25 percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat of return on asset in percentage? a. 6.53 Ob. -8.04 Oc 6.4 d. 7.44 O e. -7.14 Of None is correct
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25
percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt
cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks
levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat
of return on asset in percentage?
a. 6.53
O b. -8.04
Oc 6.4
O d. 7,44
e. -7.14
Ot None is correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4916406c-7b4a-44f4-9bc5-bc6c1ecd9dca%2Faf73da59-5812-400a-b395-b519ca1a5d16%2Fax1mwyb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Al-Shamukh Constructors Ltd. currently has sales of OMR 21 million a year, with a stock level of 25
percent of the sales. Annual holding cost for the stock is 20 percent of value. Operating cost (excludingt
cost of stocks) are OMR 15 million a year and other assets are valued at OMR 30 million. If the stocks
levels are reduced to 20 percent of the sales, then what will be the improvement (or reduction) in the rat
of return on asset in percentage?
a. 6.53
O b. -8.04
Oc 6.4
O d. 7,44
e. -7.14
Ot None is correct
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