Mt. Springs, Inc. invested $100,000 and plans to receive $123,000 from said investment. Which of the following is the BEST measure of the return on this investment (ROI)?
| $23,000 |
| 23% |
| -$23,000 |
| -23% |
The return on this investment (ROI) = ( Amount Received - Investment Amount) / Investment Amount * 100
= ($ 123,000- $ 100,000 ) / $ 100,000 * 100
= 23%
Hence the correct answer is 23%
Mt. Springs, Inc. invested $100,000 and plans to receive $123,000 from said investment. Which of the...
Consider the following data (in millions) from Trident Financial Inc., which has two main divisions, mortgage loans and consumer loans: Mortgage Loans Consumer Loans Average total assets $ 2,700 $ 17,250 Operating income $ 540 $ 2,070 Return on investment (ROI) 20.00 % 12.00 % Required: 1. Based on ROI, which division is more successful? Mortgage loan or Consumer loans 2. Trident uses residual income (RI) as a measure of the financial performance of its divisions. What is the RI...
Consider the following data (in millions) from Trident Financial Inc., which has two main divisions, mortgage loans and consumer loans Average total assets Operating income Return on investment (ROI) Mortgage Loans $ 2,000 $ 400 208 Consumer Loans $ 20,000 $ 2,500 12.5% Required: 1. Based on ROI, which division is more successful? O Mortgage loans O Consumer loans 2. Trident uses residual income (RI) as a measure of the financial performance of its divisions. What is the RI for...
Consider the following data (in millions) from Trident Financial
Inc., which has two main divisions, mortgage loans and consumer
loans:
Mortgage Loans
Consumer Loans
Average total assets
$
1,100
$
21,250
Operating income
$
242
$
2,550
Return on investment (ROI)
22.00
%
12.00
%
Required:
1. Based on ROI, which division is more successful?
Mortgage loans
Consumer loans
2. Trident uses residual income (RI) as a measure of the
financial performance of its divisions. What is the RI for...
Calculate the Marketing Return on Investment (ROI) for Apple. (7.5 pts) Calculate the Marketing Return on Investment (ROI) for Microsoft. (7.5 pts) Which company has the best ROI? (5 pts). Explain what ROI measures. (5 pts) In 2014, Apple reported profits of more than $50 billion on sales of $182 billion. For that same period, Microsoft posted a profit of almost $30 billion on sales of $88 billion. So Apple is a better marketer, right? Sales and profits provide information...
In December 2017, Rangers Inc. invested $100,000 of idle cash in U.S. Treasury notes. The notes mature on October 1, 2018, at which time Rangers expects to redeem them at face value of $100,000. The treasurer believes that the notes should be classified as cash equivalents because of the plans to hold them to maturity and receive face value. He also wants to avoid presentation of the purchase as an investing activity because the company made sizable capital expenditures during...
GNC Holdings Inc. is a leading retailer of health and nutrition products, which are sold through both company-operated (3,500 outlets) and franchised retail (3,200 outlets) stores. In addition, GNC manufactures many of the products that it sells through its company operated and franchised channels. As such, GNC's operating segments are Retail, Franchise and Manufacturing. The Retail segment is made up of company operated stores, and the Franchise segment is made up of franchised stores. Recent financial information from these segments...
Here is the text book information, trend needs to be
return on investment
Calculate one financial statement ratio trend within your industry that warrants improvement efforts. Make up your own. Return on Investment LO 2 Explain the importance and show the calculation of return on investment. Imagine that you are presented with two investment alternatives. Each investment will be made for one year, and each investment is equally risky. At the end of the year you will get your original...
Which of the following best defines incremental earnings? O A. cash flows arising from a particular investment decision OB. the earnings arising from all projects that a company plans to undertake in a fixed time span OC. the net present value (NPV) of earnings that a firm is expected to receive as the result of an investment decision OD. the amount by which a firm's earnings are expected to change as a result of an investment decision
John's current portfolio of S500,000 is invested as follows: Expected annual Current Value Annual standard return $100,000 Bonds 12% S250,000 HSBC shares 8% 12% S150,000 SaSa shares 10% 18% John soon expects to receive a gratuity of S200,000 and plans to invest the entire amount in an index fund that best complements the current portfolio. John is considering the following four index funds. His selection criteria are to maintain or increase the expected return of the current portfolio and maintain...
19 Peppermint, Inc. wants to measure the relationship between profitability and the investment made by shareholders. Peppermint should use the a. return on stockholders equity b. earnings per share c. profit margin. d statement of retained earnings. 20. To determine the current market price of the stock one should review the a. balance sheet b income statement c statement of retained earnings d. None of the above 21. Which of the following considerations is most important for a stockholder when...