Question: What is the formula for calculating return on investment (ROI)?

What is the formula for calculating return on investment (ROI)?


Step by Step Solution

★★★★★

3.46 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

This is the simplest manner of calculating ROI but many companies and analys... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

67-B-M-A-F-S-A (163).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

Tim is 37 years old and would like to establish a retirement plan. Develop a spreadsheet model that could be used to assist Tim with retirement planning. Your model should include the following input...

Q:

What is the formula for calculating return on investment (ROI)?

Q:

What is the formula for calculating Earned Value?

Q:

What is the formula for calculating straight-line depreciation?

Q:

Instructions: Please put your answer in Column C only. Enter upper case letter only; no period or comma after the letter. For example: B Answer below Reference Hints: (Multiple Choice) A $100,000...

Q:

A $100,000 mortgage note was created, and the note entailed equal monthly payments of $2,500. The interest rate is 1% per month. How much interest expense is associated with the second month? A....

Q:

I need help with this assignment, this is for class Managerial Accounting. Chapter 13 Financial Statement Analysis The textbook I use is Fundamental Managerial Accounting by Thomas Edmonds,...

Q:

What is the formula for calculating return on investment (ROI)? Total cost of goods sold divided by your total revenue Gain from an investment divided by the total cost of the investment Net income...

Q:

What is the formula for calculating return on investment ( ROI ) ? a ) Net Profit / Total Assets b ) Net Profit / Investment c ) Total Revenue / Total Costs d ) Investment / Net Profit

Q:

What is the formula for calculating return on investment (ROI)?

Q:

Which of the following budgets is not specifically dependent on the short-run production budget? A. Direct materials budget. B. Direct labor budget. C. Factory overhead budget. D. Capital...

Q:

Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semiannual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment...

Q:

Observations of the reaction between nitrogen gas and hydrogen gas show us that 1 volume of nitrogen reacts with 3 volumes of hydrogen to make 2 volumes of gaseous product, as shown below: Determine...

Q:

Need Help? 5 . [ - / 1 Points ] Evaluate the integral. - 9 9 edx Need Help? 6 . [ - / 1 Points ] Consider the following.

Q:

What is the difference between the definition of a proportionate non-liquidating distribution and a proportionate liquidating distribution? What is the significance of the word proportionate ?

Q:

What types of expenditures might a new partnership incur? How are those costs treated for Federal tax purposes? Create a chart describing the expenditure, the treatment, and the Code section...

Q:

Chow Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period. July 1 Established petty cash fund by writing a check on China Bank for...

Q:

On May 31, 2012, Sabre Company had a cash balance per books of $6,781.50. The bank statement from New York State Bank on that date showed a balance of $6,404.60. A comparison of the statement with...

Q:

The following information pertains to Miner Video Company. 1. Cash balance per bank, July 31, $7,263. 2. July bank service charge not recorded by the depositor $28. 3. Cash balance per books, July...

Q:

The market for good X is currently in equilibrium. Which of the following choices would not cause both a decrease in the equilibrium price of good X and a decrease in the equilibrium quantity of good...

Q:

Why do standard setters consider it necessary to distinguish between research and development expenditure, and how does this distinction affect the accounting treatment? (appendix)

Q:

Under the proposed system of lease accounting the lessor recognises interest on the residual asset as well as the lease receivable item. (a) Why is interest charged on the lease receivable asset? (b)...

Q:

Companies sometimes get special prices from suppliers if they undertake to purchase specified commodities from the supplier over a designated future period. These supply arrangements do not have to...

Q:

The current income statement for SMU Inc. is provided below. Calculate the degree of operating leverage. Calculate the degree of financial leverage. Calculate the degree of combined leverage. If...

Q:

Star, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one that is 30 percent debt. Currently there are 13,000 shares outstanding...

Q:

The Green Corporation has ending inventory of $481,060, and cost of goods sold for the year just ended was $4,016,851. What is the inventory turnover? (Do not round intermediate calculations. Round...