Paper Details
A retailer has net sales of $1,075,000, net profit of $185,000, total assets of $600,000, and a net worth of $225,000.
a. Calculate asset turnover, profit margin, and return on assets.
b. Compute financial leverage and return on net worth.
c. Evaluate the financial performance of this retailer.
Paper Details
In Problem 3-35, you helped the medical professionals analyze their decision using expected monetary value as the decision criterion. This group has also assessed their utility for money: U (? $45,000) = 0, U (? $40,000) = 0.1, U (? $5,000) = 0.7, U ($0) = 0.9, U ($95,000) = 0.99 and U ($100,000) = 1. Use expected utility as the decision criterion, and determine the best decision for the medical professionals. Are the medical professionals risk seekers or risk avoiders?
