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Annie Kavitha
Annie Kavitha, Master's Degree
Category: Business and Finance Homework
Satisfied Customers: 1024
Experience:  17 years of teaching experience and 5 years of online tutoring experience.
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I want to see if I am doing this correctly the excel spread

Customer Question

I want to see if I am doing this correctly the excel spread sheet has the given information in regular type and my answers and calculations in bold type.
The question reads as follows
A) Calculate Salco's total asset trunover, 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 ration 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 plant's renovation?
C) Given that the plant renovation in part b occurs and Salco's interest expense rises by $50,000 per year, what will be the return earned on the common stockholders investment? Compare this rate of return with the earned before the renovation.

Excel file
Submitted: 6 years ago.
Category: Business and Finance Homework
Expert:  Annie Kavitha replied 6 years ago.


Please click on the link below for corrected file.

Annie Kavitha and other Business and Finance Homework Specialists are ready to help you
Customer: replied 6 years ago.
I see your work but I did not see if you said what I had done was correct in the first part. It doesn't look like you changed that so I am assuming it is right.

just checking


And thank you

would I be able to run my assingments by you in the future?
Expert:  Annie Kavitha replied 6 years ago.

Hi Mary,

As per your calculations you got post renovation return on common equity as 21.75% which is wrong. I have corrected the value as 14.50%. Please check the calculations.

In future you can request me for your accounting and finance assignments.


Customer: replied 6 years ago.
much appreciated left you a bonus and hope to continue to work with you