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Natali5045456 [20]
2 years ago
14

You observe that a firm's ROE is above the industry average, but both its profit margin and equity multiplier are below the indu

stry average. Which of the following statements is CORRECT?
a. Its total assets turnover must be above the industry average.
b. Its total assets turnover must equal the industry average.
c. Its total assets turnover must be below the industry average.
d. Its return on assets must equal the industry average.
e. Its TIE ratio must be below the industry average.
Business
1 answer:
love history [14]2 years ago
3 0

Answer:

The correct option is "a".

Its total assets turnover must be above the industry average.

Explanation:

Return on equity = profit margin * asset turnover* equity multiplier

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal to a company’s assets minus its debt, ROE could be thought of as the return on net assets.

ROE is considered a measure of how effectively management is using a company’s assets to create profits.

If ROE is above the industry average, this means that the company's management is above average at using the company’s assets to create profits.

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on december 31, 2021, interlink communications issued 4% stated rate bonds with a face amount of $110 million. the bonds mature
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Interest - Bond Price is $97.45 million, rounded to the nearest million.



Interest
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In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate.It differs from a fee that the borrower may pay to the lender or a third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.

To learn more about interest
brainly.com/question/2294792
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Complete Question
On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $). Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 6%.

Table values are based on:

n = 30

i = 6%

Cash Flow Amount Present Value

Interest $111,300,000 $74,454,240

Principal $100,000,000 $13,137,000

Price of bonds $87,591,240

6 0
1 year ago
Which of the following describes the mission of an organization? a. Who are we? Who will we become? b. What do we stand for and
Llana [10]

Answer:

a. Who are we? Who will we become?

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In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.

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Hence, the question of Who are we? and Who will we become? describes the mission of an organization.

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sdas [7]

Answer:

Yes. Certain kinds of firms do need to stress particular areas  of operations management. Operations management is a vast area which consists of several departments such as supply chain management, logistic management, warehouse management, data management, inventory management and etc.

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