1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
love history [14]
1 year ago
14

A firm has ROA (Return on Assets) of 16% and has the debt ratio of 30%. What's the firm's ROE (Return on Equity)?

Business
1 answer:
timurjin [86]1 year ago
5 0

The firm's ROE  is 4.8%.

<h3>What is the ROE?</h3>

The return on asset is an example of a profitability ratio. Profitability ratios measure the ability of a firm to generate profits from its asset

Return on equity = net income / average total equity

Return on assets is the ratio of net income and average total asset.

Return on assets = net income / average total asset

The debt ratio is the ratio of average total asset and average total equity.

Return on equity = return on asset x debt ratio

16% x 30% = 4.8%

To learn more about financial ratios, please check: brainly.com/question/26092288

#SPJ1

You might be interested in
Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost. Cost flows
nikklg [1K]

Answer:

$41,000.

Explanation:

The computation of the amount of direct materials cost charged to completed jobs is shown below:

= Direct Material cost - charging cost in direct material cost

= $57,000 - $16,000

= $41,000

By subtracting the charging cost that added in the direct material cost from the direct material cost we can find out the direct material cost charged that is computed above.

4 0
3 years ago
Nick has a comprehensive health care policy with a $250 per-calendar-year deductible, an 80% co-insurance provision, and a $1,00
VikaD [51]

Answer:

Nick  pay maximum $930

so correct option is d. $930

Explanation:

given data

health care policy = $250

co-insurance provision = 80 %

it mean claim to be paid by insurance company = 80%

and claim to be paid by Nick =  20 %

co payment cap = $1,000

claim insurance = $600

company paid  = $280

total bills = $5,000

to find out

How much will Nick have to pay for the second claim

solution

we get first amount to be paid by insurance company and nick  is

amount to be paid by insurance company and nick  = $600 - $250

amount to be paid by insurance company and nick = $350

and

we know here 80% of $350  paid by insurance company

so paid by insurance company  = 80% of $350 = $280

and  paid by Nick = $350 - $280 = $70

so Limit available to co payment = $1000 - $70

Limit available to co payment = $930

so Nick  pay maximum $930

so correct option is d. $930

5 0
3 years ago
Individuals and companies respond to incentives in order to allocate their scarce resources in ways that provide the __________
MakcuM [25]
Lowest because to show how scarce it is it will have to be low 
7 0
3 years ago
Read 2 more answers
The united states can use all its resources to produce 250 dvds or 500 shoes. china can use all of its resources to produce 30 d
Darina [25.2K]
It is two shoes. Leave a thanks if it benefited you!
8 0
3 years ago
The ________ is determined by the amount by which government spending exceeds government revenue in a fiscal year. budget defici
Amiraneli [1.4K]

The answer to this question is Budget Deficit. Budget Deficit shows that the government spending is exceeding the government revenue in a year. In order to resolve the problem in budget deficit the government should cut the expenditures or the government spending and find a way to increase revenue of the country.

8 0
3 years ago
Other questions:
  • Kristian Thalen has just joined the corporate treasury group at Electrolux of Sweden, a multinational Swedish appliance maker. E
    5·1 answer
  • Ian would like to save $2,000,000 by the time he retires in 30 years. if he believes that he can achieve a 6% rate of return, ho
    14·1 answer
  • Tetra Co. uses the perpetual inventory system and a FIFO cost flow method. On January 1, the company purchased 2,000 units of in
    9·2 answers
  • The artistic recycling of existing images is an aspect of:
    10·1 answer
  • He following transactions are for Alonzo Company.
    11·1 answer
  • Gray uses Hofstede's cultural values that were discussed in Chapter 1 to:
    12·1 answer
  • The general ledger journal entry in the General Fund to record actual expenditures and reversal of the associated encumbrance wo
    6·1 answer
  • Match the correct EFTA and PCI Standards.
    14·2 answers
  • This is for business management, can anyone help me?
    8·1 answer
  • Main supplies is a publicly traded firm with 250,000 shares of stock outstanding. if the firm issues an additional 10,000 shares
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!