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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
Which two ratio are used in DuPont system to create return on assets?
Return on Assets = Profit Margin X Asset Turnover
Is return inward a current asset?
No, return inwards is not a current asset. It is sales returns and comes on the debit side of profit and loss account. otherwise, lessened from the sales on credit side
Is purchase returns an asset or liability?
purchase return is assets or liability or expense
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
Asset or liability us treasury bills?
US treasury bills can be either an asset or a liability. They can be a safe way to hold money because the funds are backed by the US government. Alternatively, the interest return on these is low.
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
Is return outward a current asset?
yes
The risk-return relationship for each financial asset is shown on?
the security market line
What should you do if you have an empty truck idle?
Return the asset
How do you measure the risk of a single asset?
The total risk of a single asset is measured by the standard deviation of return on asset. Standard deviation is the square root of variance. To measure variance, you must have some distribution/ possibility of asset returns. However, the relevant risk of a single asset is the systematic risk, not the total risk. Systematic risk is the risk that cannot be diversified away in a portfolio. Systematic risk of an asset is measured by the Beta. Beta can be found using Regression (between market return and asset's return) or Covariance formula.
Which two ratio are used in DuPont system to create return on assets?
Return on Assets = Profit Margin X Asset Turnover
What should you do if you have an empty truck sitting idle?
Return the asset
What is the profit margin if the asset turnover ratio is 3 time and the return on asset is .1?
Return on Assets = Profit Margin on Sales x Asset Turnover .1 = Profit Margin on Sales x 3 .033 = Profit Margin on Sales
