In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover

Question:

In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover of 2.

a. Calculate the operating return on assets in 2015.

b. If the sales were $1 million in 2015 and are expected to increase for 50 percent in 2016, other things being equal, what will be the total asset turnover value in 2016?

c. Assume the operating profit margin remains the same. How will a 50 percent increase in sales affect the operating return on assets in 2016?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

See More Books

Question Posted: Feb 21, 2024 05:00 AM

See More Questions

In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover of 2. a. Calculate the operating return on assets in 2015. b. If the sales were $1 million...
The R. M. Smithers Corporation earned an operating profit margin of 10 percent based on sales of $ 10 million and total assets of $ 5 million last year. a. What was Smithers total asset turnover...
The R. M. Smithers Corporation earned an operating profit margin of 10 percent based on sales of $10 million and total assets of $5 million last year. a. What was Smithers total asset turnover ratio?...
Young tableaux. Suppose you have an $n$-by- $n$ array of integers a [] [] such that, for all $i$ and \(j, a[i][j] A two-dimensional array with this property is known as a Young tableaux. Write...
The population P (in thousands) of Alaska in the years 2005 through 2015 can be modeled by P = 75 ln t + 540, 5 t 15 where t represents the year, with t = 5 corresponding to 2005. During which year...
How can employees ensure they are compliant with the laws and legislation enforced by the EEOC?
Define outsourcing and offshoring. Compare and contrast the two as HR administrative tools. Give examples of the decision factors to consider when choosing one over the other.
As resident manager of a large apartment complex, you receive free rent in return for collecting rents, doing simple maintenance, and enforcing the complexs rules. You find the following notice in...
How does the standard define relevance and reliability? What must an auditor do if conditions indicate that a document may not be authentic or the terms in a document have been modified but that the...
Star Inc. has two divisions, A and B, and would like to evaluate the contribution of each division to the value of the company as a whole. Star Inc. traditionally uses operating return on investment...
Blackberry Co. has experienced some difficulties financing its short-term expansion plans for its business. Blackberry Co. financed the construction of a new warehouse with a long-term loan from a...
Refer to Problems 9 and 10 in the chapter involving the Salza Technology Corporation A. Calculate Salzas NOPAT breakeven in terms of NOPAT breakeven revenues for 2010. B. Calculate the NOPAT...
How does the natural imagery of the wilderness in the works of Henry David Thoreau and John Muir reflect their transcendentalist beliefs and environmental advocacy?
In terms of accounting, payroll expenses could consist of wages, employer paid group benefits, employer contributions to a registered pension plan, employer portion of EI or CPP.
Write name of all the materialistic belongings of all the required fields of mathematics.
What are the benefits and shortcomings of a regressive rate structure? Explain with examples.
Analyze the development of female characters in Virginia Woolf's novels, such as Clarissa Dalloway in "Mrs. Dalloway" and Orlando in the eponymous work, discussing how Woolf challenges traditional...
Why do you suppose that the coordination of the various elements of the project is considered the most difficult aspect of project implementation?
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
You are considering an investment in Minnix Petroleums preferred stock. The preferred stock pays a dividend of $2.31. Your required return is 12 percent. Value the stock.
The Cammack Corporation wants to achieve a steady 7 percent growth rate. If it can achieve a 12 percent return on equity, what percentage of earnings must Cammack retain for investment purposes?
Septian, Inc.s return on equity is 16 percent, and the management plans to retain 60 percent of earnings for investment purposes. What will be the firms growth rate?
1. (55 points) Answer the following questions about the steady state system shown below. (Don't worry about starting from 1st Law - use common engineering assumptions.) a) Is it appropriate to use...
Describe at least three ways that Guidance Software responds to and helps to manage changes in our technology - driven world? Describe what forecasting involves and list three limitations to...
please use excel to solve this and format it the same way! thank you Paste F17 A > B Arial BIU fx C D 10 A A A E F G ||| H I J K 6 A 20-year, 6% quarterly coupon bond with a par value of $10,000 may...

In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover

Question:

Step by Step Answer:

a Operating return on assets OROA Operating profit margin x Total asset turnover OROA 15 x 2 30 b T...View the full answer

Foundations Of Finance

Students also viewed these Business questions