BUS 401AssignmentTo complete the following assignment, go to this week’s Assignment link in the left navigation.Ratio AnalysisReview the financial information pertaining to Salco Inc. in Study Problem 4-10 on pages 113 and 114 of you text. Answer the following questions in an Excel document. Solve using Excel formulas (preferred) or clearly write out the steps you took to calculate your answers. Round any dollar amounts to the nearest dollar ($1,500,074) and any percentages to two decimals (9.56%).*** Note that Chapter 8 is currently under editorial review for the equation of Common Stock Valuation. The formula that follows should be used in this assignment:Expected Rate of Return = (Dividend in Year / Market Price) + GrowthRate Investor’s Value = Dividend in Year / (Required Rate of Return – Growth Rate)4-10.(Financial ratiosâinvestment analysis) The annual sales for Salco Inc. were $4.5 million last year. The firmâs end-of-year balance sheet was as follows:Current assets$ 500,000Liabilities$1,000,000Net fixed assets 1,500,000Ownersâequity 1,000,000$2,000,000$2,000,000The firmâs income statement for the year was as follows:Sales$ 4,500,000Less cost of goods sold (3,500,000)ExamSales$ 4,500,000Less cost of goods sold (3,500,000)Gross profit$1,000,000Less operating expenses (500,000)Operating income$ 500,000Less interest expense (100,000)Earnings before taxes$ 400,000Less taxes (50%) (200,000)Net income$ 200,000a. Calculate Salcoâs total asset turnover, operating profit margin, and operating return on assets.b. Salco plans to renovate one of its plants, which will require an added investment in plant and equipment of $1 million. The firm will maintain its present debt ratio of .5 when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13 percent. What will be the new operating return on assets for Salco after the plantâs renovation?c. Given that the plant renovation in part b occurs and Salcoâs interest expense rises by $50,000 per year, what will be the return earned on the common stockholdersâ investment? Compare this rate of return with that earned before the renovation. (Keown)Keown, Arthur J., John H. Martin, and John W. Petty.Foundations of Finance for Ashford University, 7th Edition.Pearson Learning Solutions.
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.