In computing return on assets, how does the age of the assets influence the interpretation of the values?
Answer to relevant QuestionsSingular Corp. has the following income statement data: a. Compute the ratio of each of the last four items to sales for 2010 and 2011. b. Based on your calculations, is the company improving or declining in its performance? Referring to problem 13: a. Compute after-tax return on equity. b. If the tax rate were 40 percent, what could you infer the value of before-tax income was? c. Now assume the same before-tax income computed in part b, but a ...A firm has assets of $1,800,000 and turns over its assets 2.5 times per year. Return on assets is 20 percent. What is its profit margin (return on sales)? Do the stocks of acquiring companies tend to show strong upward market movement as a result of the merger process? Comment on the reasoning behind your answer. Would low correlation coefficients over time between stock prices tend to prove or disprove the weak form of the efficient market hypothesis?
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