Hometown Resources, Inc. has a 9% rate of return on total assets and the industry average is 12%. How was the 9% rate of return on total assets computed? Comment on this information
What will be an ideal response
The 9% percent rate of return is computed by dividing net income plus interest expense by average total assets. For each $1.00 invested in its average assets, Hometown earned $0.09 in profits before considering interest expense. This is $0.05 below the industry average. Hometown needs to evaluate its average assets and net income to see where improvements can be made.
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Fritz Spa is a manufacturer of personal care products. Most men perceived it to produce grooming products only for women. To change this perception, Fritz Spa stated selling some of its products in dark-colored packaging and added "for men and women" next to the brand name in those products. Shortly, Fritz Spa managed to increase its customer base, and a lot of men stated purchasing its products. In this scenario, which of the following strategies has Fritz Spa used?
a. Geographic segmentation b. Repositioning c. Perceptual mapping d. Cannibalization
If a qualitative variable has three categories, how many dummy variables are needed?
A) 0 B) 1 C) 2 D) 3 E) 4