When we calculating ROE and ROA,do we consider Net Income after Tax or before Tax
When we calculating ROE and ROA,do we consider Net Income after Tax or before Tax
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When we calculating ROE and ROA,do we consider Net Income after
Tax or before Tax
When we calculating ROE,do we consider both equity share holders fund and preferential share holders fund?
When we calculating ROE,do we consider both equity share holders fund and preferential share holders fund?
5. When comparing the ROAS and ROES, we concluded that the ROE > ROA as long...
5. When comparing the ROAS and ROES, we concluded that the ROE > ROA as long as the ROA was greater than the average interest rate on the debt used to finance an investment. Please explain these finding and provide an example on these results. Refer to the fundamental rates of return identity when formulating your answer. 6. Provide numerical PV models in which you find an investment's IRR and NPVS using ROA-IRR and ROE-IRR, AE, maximum bid price, and...
Why do we use after-tax cost of debt but not after-tax cost of equity when calculating...
Why do we use after-tax cost of debt but not after-tax cost of equity when calculating the weighted average cost of capital (WACC)?
1. Computing ROE and ROA: Both ROA and ROE measure profitability. Which one is more useful for...
1. Computing ROE and ROA: Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why? 2. (Graded) Ratio Analysis: Consider the ratio EBITD/Assets. What does this ratio tell us? Why might it be more useful than ROA in comparing two companies? 3. Return on Investment: A ratio that is becoming more widely used is return on investment. Return on investment is calculated as net income divided by long-term liabilities plus equity. What do you think return on...
Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle...
Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder. $ millions May 31, 2015 May 31, 2014 Operating assets $62,090 $57,002 Nonoperating assets 54,368 38,819 Total assets 116,458 95,821 Operating liabilities 20,180 19,055 Nonoperating liabilities 41,958 24,097 Total liabilities 62,138 43,152 Total Oracle stockholders' equity 54,320 52,669 Total revenues 38,559 Operating income before tax 13,993 Nonoperating expense before tax 1,037...
Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle...
Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder. $ millions May 31, 2015 May 31, 2014 Operating assets $62,090 $57,002 Nonoperating assets 54,368 38,819 Total assets 116,458 95,821 Operating liabilities 20,180 19,055 Nonoperating liabilities 41,958 24,097 Total liabilities 62,138 43,152 Total Oracle stockholders' equity 54,320 52,669 Total revenues 38,559 Operating income before tax 13,993 Nonoperating expense before tax 1,037...
Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle...
Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder. $ millions May 31, 2015 May 31, 2014 Operating assets $62,090 $57,002 Nonoperating assets 54,368 38,819 Total assets 116,458 95,821 Operating liabilities 20,180 19,055 Nonoperating liabilities 41,958 24,097 Total liabilities 62,138 43,152 Total Oracle stockholders' equity 54,320 52,669 Total revenues 38,559 Operating income before tax 13,993 Nonoperating expense before tax 1,037...
Please post answers and indicate: Net income, total asset turnover, equity multiplier, ROA, and ROE You...
Please post answers and indicate: Net income, total asset
turnover, equity multiplier, ROA, and ROE
You are considering investing in Dakota's Security Services. You have been able to locate the following information on the firm: Total assets are $33 4 mililion, accounts receivable are $4.54 milifion, ACP is 25 days, net income is $4.80 million, and debt-to-equity is 12 times. All sales are on credit. Dakota's is considering loosening its credit policy such that ACP will increase to 30 days....
Mes question oot Compute, Disaggregate and interpret ROE and ROA Income statements for The Gap, Inc.,...
Mes question oot Compute, Disaggregate and interpret ROE and ROA Income statements for The Gap, Inc., follow along with selected balance sheet information (5 millons The GAP.INC Consolidated Statement of Earnings Fiscal year ended Feb. 2018 Jan. 24. 2017 Net sales $15.855 515516 Cost of goods sold and occupancy expenses 9.79 9.828 Gross profit 6.06 5.6.00 Operating expenses 452 Operating income 1:49 1.191 interest Expense 74 7 Interest income (19 Income before income taxes 1.124 Income taxes 576 Net earnings...
Compute, Disaggregate and Interpret ROE and ROA Income statements for The Gap, Inc., follow, along with...
Compute, Disaggregate and Interpret ROE and ROA Income statements for The Gap, Inc., follow, along with selected balance sheet information ($ millions). The GAP, INC. Consolidated Statement of Earnings Fiscal year ended Jan. 31, 2015 Feb. 1, 2014 Net sales $16,435 $16,148 Cost of goods sold and occupancy expenses 10,146 9,855 Gross profit 6,289 6,293 Operating expenses 4,206 4,144 Operating income 2,083 2,149 Interest expense Interest income (5) Income before income taxes 2,013 2,093 Income taxes 751 813 Net earnings...
5. When comparing the ROAS and ROES, we concluded that the ROE > ROA as long as the ROA was greater than the average interest rate on the debt used to finance an investment. Please explain these finding and provide an example on these results. Refer to the fundamental rates of return identity when formulating your answer. 6. Provide numerical PV models in which you find an investment's IRR and NPVS using ROA-IRR and ROE-IRR, AE, maximum bid price, and...
Please post answers and indicate: Net income, total asset
turnover, equity multiplier, ROA, and ROE
You are considering investing in Dakota's Security Services. You have been able to locate the following information on the firm: Total assets are $33 4 mililion, accounts receivable are $4.54 milifion, ACP is 25 days, net income is $4.80 million, and debt-to-equity is 12 times. All sales are on credit. Dakota's is considering loosening its credit policy such that ACP will increase to 30 days....
Mes question oot Compute, Disaggregate and interpret ROE and ROA Income statements for The Gap, Inc., follow along with selected balance sheet information (5 millons The GAP.INC Consolidated Statement of Earnings Fiscal year ended Feb. 2018 Jan. 24. 2017 Net sales $15.855 515516 Cost of goods sold and occupancy expenses 9.79 9.828 Gross profit 6.06 5.6.00 Operating expenses 452 Operating income 1:49 1.191 interest Expense 74 7 Interest income (19 Income before income taxes 1.124 Income taxes 576 Net earnings...
Compute, Disaggregate and Interpret ROE and ROA Income statements for The Gap, Inc., follow, along with selected balance sheet information ($ millions). The GAP, INC. Consolidated Statement of Earnings Fiscal year ended Jan. 31, 2015 Feb. 1, 2014 Net sales $16,435 $16,148 Cost of goods sold and occupancy expenses 10,146 9,855 Gross profit 6,289 6,293 Operating expenses 4,206 4,144 Operating income 2,083 2,149 Interest expense Interest income (5) Income before income taxes 2,013 2,093 Income taxes 751 813 Net earnings...
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