(Analyzing operating returns on assets) in 2015, Noble Corporation earned an operating profit margin of 15 percent and realized a total assets turnover ratio of 2. a) What was Noble's operating return on assets in 2015? b) In 2015, if the sales were $1and are expected to increase by 50 percent in 2016, other things being equal, what will be the total assets turnover value in 2016? c) Assuming the firm's opearting profit margin remains the same over the two years, how will a 50 percent increase in sales affect the operating return on assets in 2016?
(Analyzing operating returns on assets) in 2015, Noble Corporation earned an operating profit margin of 15 percent and realized a total assets turnover ratio of 2. a) What was Noble's operating return on assets in 2015? b) In 2015, if the sales were $1and are expected to increase by 50 percent in 2016, other things being equal, what will be the total assets turnover value in 2016? c) Assuming the firm's opearting profit margin remains the same over the two years, how will a 50 percent increase in sales affect the operating return on assets in 2016?
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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(Analyzing operating returns on assets) in 2015, Noble Corporation earned an operating profit margin of 15 percent and realized a total assets turnover ratio of 2.
a) What was Noble's operating
b) In 2015, if the sales were $1and are expected to increase by 50 percent in 2016, other things being equal, what will be the total assets turnover value in 2016?
c) Assuming the firm's opearting profit margin remains the same over the two years, how will a 50 percent increase in sales affect the operating return on assets in 2016?
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