Answered: You are given the following data: EBIT…

You are given the following data: EBIT : OMR 500,000 Shareholders funds : OMR 1200,000 Non current liabilities : OMR 800,000 Then return on capital employed is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Assume Skyler Industries has debt of $4,153,821with a cost of capital of 7.4% and equity of…

A: Weighted average cost of capital represents the average rate which an entity is ready to pay for its…

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be estimated with the help of dividend discount model

Q: An accountant for Stability Inc. must calculate the weighted average cost of capital of the…

A: Dear student, below is the answer and explanation for your assignment:Part 1: AnswerThe weighted…

Q: For the XYZ corporation in 2021: Long Term Operating Capital Net Working Capital Long Term Debt…

A: Free cash flow refers to the amount of money that the company has remains after incurring all the…

Q: Assuming that fixed assets of a company are USD 150, current assets are USD 50, and equity is USD…

A: Fixed assets = USD 150 Current assets = USD 50 Equity = USD 40

Q: If the cash is 135, marketable securities 120, bills payable 35, bills receivable 45, outstanding…

A: Net Working capital requirement measures the liuidity requirement of the company and is calculated…

Q: Which of the following methods of methods of capital budgeting is base cashflows: Payback NPV…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: Directions: Prepare the Statement of changes in equity. |Capital beginning Additional Investment…

A: Statement of changes in equity is important financial statement of business, which shows all changes…

Q: Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been…

A: The Capital Asset Pricing Model (CAPM) is a financial model used to determine the expected return on…

Q: If the cash is 335, marketable securities 120, bills payable 35, bills receivable 45, outstanding…

A: The gross working capital is determined by subtracting the total current liabilities from the total…

Q: Following are the details regarding the capital structure of a company Sources of Funds Debentures…

A: Source of funds Book value $ Market value $ Cost of capital Debentures 400000 3,80,000…

Q: You have the following information: total assets = $200 million; risk-adjusted assets = $90 million;…

A: The Equity Capital Ratio is a measure of a company's financial leverage and is calculated as the…

Q: Your company has current assets of $250 million, total assets of $395 million and long term debt of…

A: Current Assets = $250 Million Total Assets = $395 Million Long term debt = $116 Million Net…

Q: For items #6-10 - Financial Statement: Below is the balance sheet of ABM International for June 30,…

A: Liquidity ratios are the measures that are used to depict the capacity of the entity to meet up its…

Q: Financial Plan Components Cost Weights Weighted Cost A Debt 7.15% ? ? A Equity 5.15%…

A: WACC = We*Ke+Wd*Kd W is weight K is cost e is equity and d is debt

Q: Current Liabilibes Cash 61.2 58.5 Accounts payable Notes payable / 396 short-term debt Current…

A: Solution: We know, Net working capital means the net current assets over the current liabilities of…

Q: You have collected the following information about a company: Source of capital Market value Book…

A: Weighted average cost of capital is the weighted average of individual cost of source of capital

Q: Calculate working capital when: Cash=$100, Creditors=$100, Short-term loan=$100, Inventory…

A: Given: Cash = $100 Creditors = $100 Inventory = $100 Short term loan = $100

Q: First Philippine Holdings Corporation Liquidity Ratio 1. Discussion and analysis of Liquidity Ratio.…

A: Working capital is a liquidity ratio which assesses the dollar comparison of total current assets to…

Q: EXAMPLE 4: The capital employed in a business has been financed, as below: Equity Share Capital OMR…

A: Return on Capital employed shows the total of earnings that a firm generate from its invested…

Q: Determine Debt-Equity Ratio, Proprietary Ratio and Funds Proportion Ratios with the help of…

A: Ratio analysis is a means of information and reporting to various parties interested in the…

Q: Problem 13-5A (Algo) Comparative ratio analysis LO P3 [The following information applies to the…

A: To compute the acid-test ratio (also known as the quick ratio) for both Barco Company and Kyan…

Q: The company capital structure consists of debt 250000 at 0.076, preferred stock 230000 at 11% and…

A: The cost of capital is the sum of the cost of capital from all the sources of finance. The weighted…

Q: Find the unknowns: Consider the following data: Division K Income P140,000 ? Revenue ? P3,000,000…

A: The question is based on the concept of Accounting Ratios.

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be calculated from the dividend discount model

Q: Two capital assets display the following: E(RA) = 12% σA = 1.5% E(RB) = 15%…

A: Slope = (E(RA) + asset A´s return below the Capital Market Line) - (E(RB) + asset B´s return below…

Q: Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E): 6%; re 12%; and Tc=…

A: WACC stands for Weighted Average Cost of Capital. It is a financial metric that represents the…

Q: Consider the following information. Assets Equity and liabilities P500,000 Current debt P900,000…

A: To calculate the operating working capital, the non-interest-bearing current liabilities are…

Q: If assets are $99,000 and liabilities are $32,000, then equity equals:

A: Assets is the amount or property owned by the company where as liability is the amount owed by the…

Q: The company capital structure consists of debt 250000 at 0.084, preferred stock 230000 at 11% and…

A: Information: The first step is to calculate the weights of Debt, Preferred Stock, and common stock.…

Q: Calculation of FCFE A company has the following information: Earnings before interest and taxes…

A: concept. Free cash flow to equity (FCFE) is a measure of how much cash is available to the equity…

Q: Based on the data given below, calculate the return on invested capital (ROIC). Net income = $300…

A: NOPAT is $400 Short-term investments is $200 Stockholders' equity is $1,800 Total operating capital…

Q: Following are the current asset and current liability sections of the balance sheets for Freedom…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: The company capital structure consists of debt 250000 at 0.063, preferred stock 230000 at 11% and…

A: Weighted average cost of capital = ∑Wi*Ki W is weight of capital component i K is cost of capital…

Q: 6. Calculate and explain the Weighted Average Cost of Capital (WACC) based on the details below. a.…

A: WACC (Weighted Average Cost of Capital) is a financial metric used to assess a company's cost of…

Q: The is the cost of each financing compone cost of capital IRR cost of debt NPV

A: The cost of capital is the required rate of return that a company needs to generate in order to…

Q: Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) = $300 million; rD =…

A: Debt (D) = $100 million Equity (E) = $300 million Total capital = $400 million (i.e. $100 million +…

Q: Find the capital beginning when, Additional Income = 150,000.00 Net Income = 120,000.00 Withdrawal =…

A: Ending capital = Beginning capital + Additional investment - withdrawals + net income

Q: explain the following: Weighted Average Cost of Capital (WACC): formula and what it measures Cost of…

A: The Capital Structure consists of different sources of funds that are mainly used for financing the…

Q: Based on the given information, how much is the weighted average cost of capital?

A: Market value of ordinary shares = P 5 million Market value of long term debt = P 6.25 million Total…

Question

You are given the following data: EBIT : OMR 500,000 Shareholders funds : OMR 1200,000 Non current liabilities : OMR 800,000 Then return on capital employed is

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Insight Ltd. has the following capital Structure & after-tax Cost for different sources of funds used: Source of Funds Amount After-tax Cost Debt 15,00,000 5 Pref. Shares 12,00,000 10 Eq. Shares Retained Earnings 18,00,000 12 15,00,000 11 You are required to Calculate Weighted Average COC.
Given the information below. Find the Weighted Average Cost of Capital Market Value of Equity = $22,000,000; Debt = $15,000,000; Cash or Cash Equivalents = $15,000,000 iD = 0.10 or 10% iMKT = 0.17 or 17% tCorp = 0.30 or 30% bK = 1.5 IRF = 0.02 = 2%
Determine the formula for EVA. (WACC = Weighted-average cost of capital) After tax operating inc. Current liabilities Market value of debt Market value of equity Operating income Revenues Total assets WACC x ( )) = EVA
Calculate the Rate of Return on Assets (ROA) for 2011. Disaggregate ROA into the profit margin for ROA and total assets turnover components. Calculate the Rate of Return on Common Stockholders’ Equity (ROCE) for 2011. Disaggregate ROCE into the profit margin for ROCE, total assets turnover and capital structure leverage components.
Here are data on two firms: Equity ($ million) ROC (%) Cost of Capital (%) Debt ($ million) Аспе 140 60 16 10 Арех 440 160 14 11 a-1. Calculate the economic value added? (Do not round intermediate calculations. Enter your answers in millions) Acme Aрех Economic value added milion milion
7. New World has total assets of $31,300, long-term debt of $8,600, net fixed assets of $20,300, and owners' equity of $21,100. What is the value of the net working capital?
Calculate the Weighted Average Cost of Capital (WACC) Cost of Equity = 11.02% Cost of Debt = 5.35% Debt-to-Equity Ratio = 15.52%
What is the equity multiplier if the total assets are $9,878.20 and total shareholder equity is $6,230.20?
Solve this balance sheet picture by horizontal analysis and write why it's decrease and increase in percentage :
A company's cost of capital refers to Multiple Choice O O the rate management expects to pay on all borrowed and equity funds. the total cost of a capital project. cost of printing and registering common stock shares. the rate of return earned on total assets.
S have net working capital of $2,760, current liabilities of $8,670, and stock of $1,280. Find Current ratio?
Use the following information to answer this question. Total assets Total current liabilities Total expenses Total liabilities Total revenues Tax rate $150,000 105,000 70,000 110,000 80,000 40% After -tax cost of capital 12% Invested capital is defined as total assets less total liabilities. (round your answers te one decimal ) Capital turnover equal O A) 53.3% B) 2 OC) 6.7% D) 28.6%