Find the asset turnover ratio of a firm that has ROE of 58.5%, a net profit margin of 4.5%, and 6.5 dollars in assets per dollar of equity. Then use this value as Z in the following calculation:

You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the surface is removed it will become more difficult to extract the ore. Therefore, the value of the ore that you mine will decline at a rate of 8% per year forever. If the appropriate interest rate is (3*Z) %, what is the value of this mining operation?

Answer rating: 100% (QA)

To find the asset turnover ratio we can use the formula Asset Turnover Ratio Net Sales Average Total ... View the full answer