Austin Inc

question 5

Essay

Austin Inc.has a return on investment (ROI)of 10.2 per cent.The company's margin was 60 per cent and its turnover was 17.
How do margin and turnover relate back to ROI and what kinds of information do each of them provide?

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Definitions:

Face Value

The nominal value printed on a bond, currency, or ticket, which may differ from its market value or purchase price.

Rational Investor

An individual who makes investment decisions based on logic and factual analysis rather than emotion or hearsay, aiming to maximize returns while minimizing risks.

Face Value

The nominal value or dollar value printed on a security, such as a bond or stock, which indicates its worth at issuance or maturity.

Interest Payment

A payment made to a lender by a borrower in exchange for the use of borrowed money, typically a percentage of the principal.