Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?

Related Mcqs:

1. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

   A. $22,275
   B. 15.71%
   C. 1.93%
   D. 1.925 times

2. The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be _________?

   A. 22275
   B. 0.1571
   C. 0.01925
   D. 1.925 times

3. Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?

   A. 0.07%
   B. 7.14%
   C. 0.05 times
   D. 7.15 times

4. The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be __________?

   A. 0.2673
   B. 26.73 times
   C. 0.094
   D. 0.4 times

5. The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be ________?

   A. 0.0007
   B. 0.0714
   C. 0.05 times
   D. 7.15 times

6. If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be _________?

   A. 0.025
   B. 0.081
   C. 0.004
   D. 4 times

7. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

   A. Rs. 300,000
   B. Rs. 500,000
   C. Rs. 800,000
   D. Rs. 1100,000

8. Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?

   A. 16.75%
   B. 2.68%
   C. 0.37%
   D. 9.20%

9. The return on assets is equal 6.7% and equity multiplier is equal to 2.5% then the return on equity will be

   A. 0.1675
   B. 0.0268
   C. 0.00373
   D. 0.092

10. Difference between actual return on stock and predicted return is considered as___________?

    A. Probability error
    B. Actual error
    C. Prediction error
    D. Random error