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2 years ago

Profitability measures such as return on assets (roa) and return on equity (roe) are ___ rates of return.

1 answer:

4 0

Profitability measures such as return on assets (roa) and return on equity (roe) are accounting rates of return.

Profitability ratios measure the ability of a firm to generate profits from its asset. Examples of profitability ratio are return on equity, return on assets, gross profit margin, return on invested capital and return on capital employed.

Return on equity calculates the efficiency with which a firm generates returns to its shareholders. The higher the return on equity is, the more efficient it is for the firm to generate income for its shareholders. Return on equity is the ratio of net income to total equity.

Return on equity = net income / average total equity

The return on asset is used to determine how much profit a firm can generate from its assets. Return on asset is net income divided by total assets. It is an example of a profitability ratio. The higher the return on assets, the more efficient it is in generating income from its assets.

Return on total assets = Net income / average total assets

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In many developing countries, the amount paid in ___________________ was as much as the combined amount for water, health, agric

Marianna [84]

In many developing countries, the share paid in a deficit budget was as much as the united amount for water, health, agriculture, roads, transport and finance.

<h3>What is the surplus and deficit budget?</h3>

A budget surplus is when extra money is gone over in a budget after expenses are paid. A budget deficit ensues when the federal government spends more money than it contains in revenue. Internal loans that drive up for the bulk of public debt are further divided into two broad types – marketable and non-marketable debt.

Anyone having borrowed funds or interests from another owes a debt and is beneath obligation to return the goods or repay the funds, usually with interest. For governments, the demand to borrow to finance a deficit budget has led to the growth of various states of national debt.

To learn more about the deficit budget visit the link

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6 0

1 year ago

A retail store credited the sales revenue account for the sales price and the amount of sales tax on sales. if the sales tax rat

alexira [117]

We have to calculate the amount of the sales taxes owed to a taxing agency.
The tax rate is 5% ( 0.05 ) and the balance in the sales revenue account amounted to $294,000.
$294,000 * 0.05 = $14,700
Answer:
Amount of the sales taxes is B ) $14,700.

8 0

3 years ago

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

<em>Now we solve for the intrinsic price using the gordon model</em>

<em>with multi-stage growth:</em>

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

<u>Finally we add them and get:</u>

42.97160726

8 0

4 years ago

What is one way to begin saving start up capital?

Stella [2.4K]

Answer:

A - Set aside a portion of your income each month.

Hope This Helps

8 0

3 years ago

The process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply fo

irina1246 [14]

Answer:

recruitment is the correct answer.

Explanation:

Recruitment is a process of hiring and selecting the right and qualified person for a vacant position.

The recruitment process involves selecting a required candidate, sourcing attracting, investigating the job qualifications, screening, analyzing the application, strategy development, evaluation and shortlisting.

The advantages of the Recruitment process are increased applicant quality, increase manager satisfaction and improve employment name.

4 0

4 years ago