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A Company Reported Net Income of $100,000 and Average Total

question 31

Short Answer

A company reported net income of $100,000 and average total assets of $425,000.Calculate its return on total assets.


Definitions:

Current Yield

The annual income (interest or dividends) divided by the current price of the security, expressed as a percentage.

8% Bond

A bond that pays an annual interest rate of 8% on its face value, typically issued by corporations or governments as a form of debt financing.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, taking into account its current market price, par value, coupon interest rate, and time to maturity.

6 ¾% Bond

A bond that pays an annual interest rate of 6.75% to its holder, typically issued by governments or corporations.

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