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Use the information from this table to calculate the correlation coefficient for the assets.
|
State of Economy |
Probability of State |
Return on Asset J |
Return on Asset K |
|
Boom |
30% |
5% |
24% |
|
Growth |
40% |
5% |
12% |
|
Stagnant |
20% |
5% |
4% |
|
Recession |
10% |
5% |
-10% |
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- The probability distribution of the returns of two assets, A and B, are shown in the table below. Calculate the covariance between the returns of asset A and asset B. State of Economy Probability of State Return of Asset A Return of Asset B Boom 0.20 40% 5% Normal 0.45 20% 10% Slow Down 0.25 0% 15% Recession 0.10 -20% 30% O-0.3750 -0.0114 0.3750 -50.2500 -2.525assuming the following ratios are constant, what is the growth rate? Total asset turnover 1.7 Profit margin0.072 Total assets/Equity = 2.15 Payout ratio0.42Use the information from this table to find the standard deviation for each asset. State of Economy Probability of State Return on Asset J Return on Asset K Boom 30% 5% 24% Growth 40% 5% 12% Stagnant 20% 5% 4% Recession 10% 5% -10%
- Consider the table given below to answer the following question. Year 1 2 3 4 7 9. 10 Asset value 13.00 14.56 16.31 18.26 19.91 21.70 23.65 25.07 26.58 28.17 Earnings 1.56 1.75 1.96 2.19 2.39 2.50 2.60 2.63 2.13 2.25 Net investment 1.56 1.75 1.96 1.64 1.79 1.95 1.42 1.50 1.59 1.69 Free cash flow (FCF) 0.55 0.60 0.54 1.18 1.13 0.53 0.56 Return on equity (ROE) 0.12 0.12 0.12 0.12 0.12 0.115 0.11 0.105 0.08 0.08 Asset growth rate Earnings growth rate 0.12 0.12 0.12 0.09 0.09 0.09 0.06 0.06 0.06 0.06 0.12 0.12 0.12 0.09 0.04 0.04 0.01 -0.19 0.06 Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7, 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? Assume 11% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) X Answer is complete but not entirely correct. Present value 2$ 19.72 X million 6.ACCOUNTING ASAP Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10. Calculate the cash coverage ratio. Select one: a. 7.0x b. 4.7x c. 14.0x d. 5.0xDIRECTION: Compute the following PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales Return on Equity= Profit/Shareholder's Equity Return on Asset= Profit/Total Asset TREND ANALYSIS Net Income Growth Rate Total Assets Growth Rate And also compute the percentage beside the columns December 31, December 31, PERCENTAGE 2021 2020 USD USD Assets Current assets Cash and cash equivalents 34,115,412 25,681,845 Short-term financial instruments 71,417,748 80,798,680 Short-term financial assets at amortized cost 2,944,705 2,409,853 Short-term financial assets at fair value through profit or loss 35,624 62,452 Trade receivables 35,585,565 27,065,012 Non-trade receivables 3,930,828 3,150,548 Prepaid expenses 2,042,001 1,980,685 Inventories 36,172,043 28,007,314 Other current assets 4,441,629 3,281,589 Assets held-for-sale - 812,370 Total Current Assets…
- Tasks/ calculation these questions are :- by 6 functions are : 1. Accumulative (future) money value 1/ Simple interest FV=PV*(1+* ? *N) 2/ Aggregate interest FV=PV (1+ ? )N 2. Present money value PV = FV * ^note N- total times of getting income^ R= ?????? ??? / N n- frequency of income generation per year 3. Present payment value PV = PMT * 4. Future payment value (PMT) FV = PMT * 5. Amortization payment PMT = PV * 6. Solatium fond factor (SFF) PMT = FV * Q1/ The investor wants to invest in the purchase of an office building. He suggests he can rent it out for 10 years at an annual rent of 1,850,000. At the end of the tenth year it is expected to sell the company for 18 million d.e. Income rate 20% What is the current value of the building?Use the information from this table to find the expected return for each asset. State of Economy Probability of State Return on Asset J Return on Asset K Boom 30% 5% 24% Growth 40% 5% 12% Stagnant 20% 5% 4% Recession 10% 5% -10%Category of industry is real estate. The analysis of Return on Asset (ROA) is as follows: 2015: 2.16% 2016: 1.10% 2017: 1.96% 2018: 1.99% 2019: 1.65% a. What is the trend analysis for that ROA and why it is increasing and decreasing?
- Calculate the historical mean and standard deviation of returns for the following two assets. Asset 1 2014 2015 2016 2017 5.08% -3.12% 2.50% 5.30% Asset 2 2014 2015 2016 2017 -1.16% -8.33% 15.23% 16.51%Consider the table given below to answer the following question. Year Asset value Earnings Net investment Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 10.00 Present value 1.20 1.29 0.00 0.12 0.12 2 3 4 5 6 7 8 9 10 1.84 11.20 12.54 14.05 15.31 16.69 18.19 19.29 20.44 21.67 1.34 1.51 1.69 2.00 2.18 2.31 2.45 2.60 1.34 1.51 1.26 1.38 1.50 1.09 1.16 1.23 1.30 0.42 0.46 0.50 1.09 1.16 1.23 1.30 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.09 0.09 0.06 0.06 0.06 0.06 0.00 0.00 0.12. 0.12 0.12 0.09 0.12 0.12 0.12 0.09 0.09 0.09 0.06 0.06 0.06 Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7. 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? Assume 10% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) D $ 14.46 million8. Trend Ratios, Application of some Financial Ratios and their Interpretation Some of the balance sheet and income statement figures of Sapphire Mfg. CO. for 2016, 2017 and 20181 are as follows. 2018 P30,000 2016 2017 Quick assets P40,000 P48,000 65,000 25,000 80,000 50,000 Current assets 50,000 40,000 110,000 200,000 Investments 160,000 135,000 Plants, property and equipment, net Total assets 250,000 265,000 Current liabilities 45,000 50,000 100,000 75,000 Long Term debt Total stockholders' equity 40,000 50,000 105,000 125,000 125,000 Total liabilities and stockholders' Equity 200,000 400,000 240,000 250,000 265,000 Sales 375,000 500,000 Cost of goods sold Operating expenses (including Depreciation of P10,000) 255,000 290,000 110,000 95,000 105,000 Net income 50,000 50,000 130,000 a) Compute for the trend ratios based on the above given data and give your interpretation of the 2017 and 2018 figures.