Answer:
c. 21%.
Explanation:
the return on equity will be the net income divided by the total equity
income 115,000,000
equity 540,000,000
return on equity = 0,212962962962963 = 21%
This ratio can e interpretate as follows:
For each dollar invested from owners into the company the ent income increases by 21 cents or it represent 21% of the equity is achieve in earnigns every years.
<u>The pay structure </u>should support the organization strategy, support the workflow and motivate behavior toward organization objectives.
<h3>
What do you mean by organization strategy?</h3>
An organization strategy is defined as the strategy that include long -term as well as the short-term plans based on how the organization use its resource to support activities and growth.
Furthermore, the pay-structure of every company can helpfully define the organization strategy, support the workflow in the company. Based upon pay structure, the promoters of organizations make a decision regarding the how to motivate the employees for better earnings.
Adding to it, organizational strategy establishing the priorities and setting the direction for our business. It clarifies the path of success and also set the prioritizes that are needed.
Learn more about Pay structure, refer to the link:
brainly.com/question/16006633
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Answer:
2.41%
Explanation:
The difference between the two firms' ROEs is shown below:-
Particulars Firm HD Firm LD
Assets $200 Debt ratio 50% Debt ratio 30%
EBIT $40 Interest rate 12% Interest rate 10%
Tax rate 35%
Debt $100 $60
Interest $12 $6
($100 × 12%) ($60 × 10%)
Taxable income $28 $36
($40- $12) ($40 - $6)
Net income $18.2 $22.1
$28 × (1 - 0.35) $36 × (1 - 0.35)
Equity $100 $140
($200 - $100) ($200 - $60)
ROE 18.2% 15.79%
($18.2 ÷ $100) ($22.1 ÷ $140)
Taxable income = EBIT - Interest
Net income = Income - Taxable income
Equity = Assets - Debt
ROE = Net income ÷ Equity
Difference in ROE = ROE Firm HD - ROE Firm LD
= 18.2% - 15.79%
= 2.41%
So, for computing the difference between the two firms' ROEs we simply deduct the ROE firm LD from ROE firm HD.
