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Expected return for an asset equals its required return?
This should be correct in a perfect market. Not true usually as assets are often mis priced. Expected return is the return/discount that market is using to get the value of the asset while required return is the discount / return that gets you the true intrinsic value of an asset
Is return outward a current asset?
yes
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
How do you calculate total asset turnover?
Total asset turnover ratio = total sales / total assets
Which two ratio are used in DuPont system to create return on assets?
Return on Assets = Profit Margin X Asset Turnover
Security A has an expected return of 7 percent?
Security A is less risky if held in a diversified portfolio because of its negative correlation with other stocks. In a single-asset portfolio, Security A would be more risky because sA> sBand CVA > CVB.
Both return on asset and return on equity measure profitability which one is more useful for comparing two companies why?
Return on asset= profit margin × asset turnover Return on equity= return on asset × equity multiplier so, return on equity is more comprehensive
Debt asset ratio 74 return on asset 13 percent what is return on equity?
.5
Expected return for an asset equals its required return?
This should be correct in a perfect market. Not true usually as assets are often mis priced. Expected return is the return/discount that market is using to get the value of the asset while required return is the discount / return that gets you the true intrinsic value of an asset
What is the net income when A firm has an Return of Assets of 12 percent sales 1500 total assets of 1275?
Return on asset = 1275 * 12% Return on asset = 153
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
What does imperfect asset substitutability assume?
Imperfect Asset substitutability assumes that returns from two assets in different countries differ in equilibrium. The main reason is risk, i.e. If bonds denominated in different currencies have diverse degree of risk, investors will hold very risky assets if and only if the expected return is relatively high.
Is return outward a current asset?
yes
The risk-return relationship for each financial asset is shown on?
the security market line
How do you calculate Excess Returns?
To calculate excess returns, subtract the risk-free rate of return from the actual return on the investment. Excess returns show the additional return earned above the risk-free rate, which represents the compensation for taking on additional risk. It is commonly used to evaluate the performance of an investment or portfolio.
How do you calculate total asset turnover?
Total asset turnover ratio = total sales / total assets
How do you calculate the net asset ratio?
Net Asset Ratio = Total Net Assets/Total Assets
