Receiving an 'E' will not give you any point average.
Answer:
B.utilizing its total assets more efficiently than Sam's
Explanation:
Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88. Both companies have similar operations.
Based on this information, although Sam seems to be utilizing its fixed assets more efficiently, <u>Dee's must be doing utilizing its total assets more efficiently than Sam's</u>
<u>The fixed asset turnover ratio is an efficiency ratio that measures a companies return on their investment in property, plant, and equipment by comparing net sales with fixed assets. In other words, it calculates how efficiently a company is a producing sales with its machines and equipment.</u>
Dee's has a total asset turnover rate of 0.91 compared to a total asset turnover rate of 0.88 by Sam. Hence Dee's efficiency is higher.
Answer:
21%
Explanation:
We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data
DATA
Payout ratio = 0.4
Return on equity = 25%
Dividend yield = 6%
Solution
Growth rate = Return on equity x retention ratio
Growth rate = Return on equity x (1 - payout ratio)
Growth rate = 25% x (1-0.4)
Growth rate = 25% x 0.6
Growth rate = 15%
Expected return = Dividend yield + growth rate
Expected return = 6% + 15%
Expected return = 21%
Answer:
D
Explanation:
Net working assets is current assets less current liabilities
Current assets include cash, cash equivalents and inventory
Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable
When inventory is purchased with cash, inventory increases and cash reduces, thus there is no change in net working capital
Net working capital can be negative or positive.
If current assets is greater than current liabilities, it would be positive, if this is not the case, it would be negative.
This should NOT be considered when setting a current budget
Future income
Explanation:
Future income can be anticipated but never factored in.
This is because the economy is not only controlled by economic policy or statistics that anticipate growth but outside influences too.
For example, despite the productive growth in the recent time there will be decrease in incomes throughout the world this year.
This is because of the recent crisis that was not foreseen at all.
Thus policy making must not see the future as anything granted and must only set up goals for the present and only anticipate what would probably come in the future.
