FUND.ACCT.PRIN.-CONNECT ACCESS
25th Edition
ISBN: 9781260780185
Author: Wild
Publisher: MCG
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Chapter 15, Problem 19QS
1)
To determine
Introduction: The return on total assets demonstrates how successfully a business generates profits from its assets. Return on total assets helps the business organizations in determining whether the entity has effectively utilized its assets in relation to its earnings or not.
The return on total assets in the current year and 1 year ago.
2)
To determine
Introduction: The return on total assets demonstrates how successfully a business generates profits from its assets. Return on total assets helps the business organizations in determining whether the entity has effectively utilized its assets in relation to its earnings or not.
The efficiency of the company in utilizing its total assets in the current year.
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Consider the table given below to answer the following question.
Year
1
2
3
4
7
9.
10
Asset value
13.00 14.56 16.31
18.26
19.91 21.70 23.65
25.07 26.58 28.17
Earnings
1.56
1.75
1.96
2.19
2.39
2.50
2.60
2.63
2.13
2.25
Net investment
1.56
1.75
1.96
1.64
1.79
1.95
1.42
1.50
1.59
1.69
Free cash flow (FCF)
0.55
0.60
0.54
1.18
1.13
0.53
0.56
Return on equity (ROE)
0.12
0.12
0.12
0.12
0.12 0.115
0.11 0.105
0.08
0.08
Asset growth rate
Earnings growth rate
0.12
0.12
0.12
0.09
0.09
0.09
0.06
0.06
0.06
0.06
0.12
0.12
0.12
0.09
0.04
0.04
0.01
-0.19
0.06
Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7,
10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? Assume 11% cost of capital. (Do
not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
X Answer is complete but not entirely correct.
Present value
2$
19.72 X million
6.
Need help calculating:
A. Economic value added
and
B. Return on Capital
This year
Last year
1050
Assets
Cash
1530
Marketable securities
Accounts receivable
Inventories
Total current assets
1810
1220
2050
1770
2900
2790
8290
6830
Gross fixed assets
29480
28090
Less: Accumulated depreciation
14680
13140
Net fixed assets
14800
14950
Total assets
Liabilities and Stockholders' Equity
23090
21780
Accounts payable
Notes payable
Accruals
1560
1540
2760
2160
190
350
Total current liabilities
4510
4050
Long-term debt
Common stock
Retained earnings
Total stockholders' equity
5220
4970
9950
9950
3410
2810
13360
12760
Total liabilities and stockholders' equity
23090
21780
Chapter 15 Solutions
FUND.ACCT.PRIN.-CONNECT ACCESS
Ch. 15 - Prob. 1QSCh. 15 - Prob. 2QSCh. 15 - Prob. 3QSCh. 15 - Prob. 4QSCh. 15 - QS 15-5 Reporting trading securities on financial...Ch. 15 - Prob. 6QSCh. 15 - Prob. 7QSCh. 15 - Prob. 8QSCh. 15 - Prob. 9QSCh. 15 - Prob. 10QS
Ch. 15 - Prob. 11QSCh. 15 - Prob. 12QSCh. 15 - Prob. 13QSCh. 15 - Prob. 14QSCh. 15 - Prob. 15QSCh. 15 - Prob. 16QSCh. 15 - Prob. 17QSCh. 15 - Prob. 18QSCh. 15 - Prob. 19QSCh. 15 - Prob. 1ECh. 15 - Prob. 2ECh. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Prob. 8ECh. 15 - Prob. 9ECh. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Prob. 17ECh. 15 - Prob. 18ECh. 15 - Prob. 19ECh. 15 - Prob. 1PSACh. 15 - Prob. 2PSACh. 15 - Prob. 3PSACh. 15 - Prob. 4PSACh. 15 - Prob. 5PSACh. 15 - Prob. 6PSACh. 15 - Prob. 1PSBCh. 15 - Prob. 2PSBCh. 15 - Prob. 3PSBCh. 15 - Prob. 4PSBCh. 15 - Prob. 5PSBCh. 15 - Prob. 6PSBCh. 15 - SP 15 While reviewing the March 31, 2020, balance...Ch. 15 - Prob. 1GLPCh. 15 - Prob. 2GLPCh. 15 - Prob. 1AACh. 15 - Prob. 2AACh. 15 - Prob. 3AACh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 11DQCh. 15 - Prob. 1BTNCh. 15 - Prob. 2BTNCh. 15 - Prob. 3BTNCh. 15 - Prob. 4BTN
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