Answer:
Benjamin put together a ad hoc committee
Explanation:
Answer:
a) DuPont analysis for Johnson International
2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%
2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%
2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%
b) DuPont analysis for industry averages
2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%
2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%
2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%
c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.
Explanation:
The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:
R
OE = net pro
fit margin x total assets turnover x financial leverage
Answer:
the increase in taxes as a percentage of the increase in income
Explanation:
"Marginal" anything in business or economics refers to rate of change. The marginal tax rate is the tax paid on the next unit of income. That is, it is ...
the increase in taxes as a percentage of the increase in income
Answer:
9.68%
Explanation:
The cost of equity :
Using this formula
rE=rU+D/E *(rU-rD)
Let plug in the above formula:
rU=0.092
D=0.13
E=(100%-13%)
=0.87
rD=0.06
rE=0.092+ 0.13/0.87*(0.092-0.06)
rE=0.092+0.1494*0.032
rE=0.092+0.004781
= 0.0968 ×100
=9.68%
