Question: 52You are considering investing in Nuran Security Services.You have been able to locate the following informationon the firm: total assets are $26.95 million, accountsreceivable are $4.30 million, ACP is 30 days, net income is$4.50 million, and debt-to-equity is 1.20 times.Calculate the ROE for the firm.

The problem requires the determination of the ROE. Return on equity or ROE is a measure of a…

Answered: Question: 52 You are considering…

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 6DQ

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Please show the solution in excel format :) thank you
You are considering investing in Dakota's Security Services. You have been able to locate the following information on the firm: Total assets are $32.6 million, accounts receivable are $4.46 million, ACP is 25 days, net income is $4.83 million, and debt-to-equity is 1.3 times. All sales are on credit. Dakota's is considering loosening its credit policy such that ACP will increase to 30 days. The change is expected to increase credit sales by 6 percent. Any change in accounts receivable will be offset with a change in debt. No other balance sheet changes are expected. Dakota's profit margin will remain unchanged. How will this change in accounts receivable policy affect Dakota's net income, total asset turnover, equity multiplier, ROA, and ROE? Note: Do not round intermediate calculations. Enter your answer in millions of dollars. Round your answers to 2 decimal places. Use 365 days a year. Net income Total asset turnover Equity multiplier ROA ROE million times times % %
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Suppose you have calculated the value of the risks for your insurance company. What is the required risk based capital for your insurance company? C0 =50,000 C1CS =45,000 C10 =350,000 C2=440,000 C3a =5,000 C3b =100,000 C3c= 95,000 C4a = 16000 C4b = 70,000 a) $ 1,051.19 b) $ 67,051.19 c) $ 595,084.03 d) $ 661,084.03
Congratulations!!! You just landed your first job as a financial analyst for RB International. Your new boss is looking at an investment with the following timeline and cash flow. Including the initial outlay (which is at time 0), what is the present value of this investment assuming a 12% interest rate? Year 10 Cash Flows (1,000) O $658.31 O $89247 O $1.119.54 O $1.257.61 O $1.339.76 Year 1 395 Year 2 135 Year 3 920 Year 4 610 Year 5 1,475
1. FastDrop economic value You are planning to place your money in safe government securities, which currently offer a 4% riskless rate of return. Before making this investment, an entrepreneur approaches you and asks you to purchase her new business venture, Fast Drop, a delivery service for legal documents that would produce a single cash inflow of $80,000 at the end of the year. You have determined that 6% is an appropriate risk premium for this investment. How much would you be willing to pay for Fast Drop?
Vala
Calculate the risk-weighted asset for this amount. A Commercial Banking business line (15%) that reports positive profits in the last 3 years: $750,000.00 in 2017, $600,000.00 in 2018, $300,000.00 in 2019. For $550,000.00 MXN Select one: a.$82,500.00 MXN. b.$99,000.00 MXN. c.$28,500.00 MXN. d.$66,000.00 MXN.
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Determine the investment's worth.%
Suppose your company wants to place an investment with a private equity firm with an amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing discount rate is 12% and with a revenue stream/dividends below. Should the company invest? Why or why not? Year Cash flow 2022 5,000.00 2023 6,000.00 2024 7,000.00 2025 8,000.00 2026 9,000.00 2027 10,000.00 2028 11,000.00 Determine the following: a. NPV for the period 2022 through 2028; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.

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