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Nina [5.8K]
3 years ago
9

You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is try

ing to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 investment and is expected to yield annual net income of $70,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $44,000.
Business
1 answer:
Ivahew [28]3 years ago
3 0

Answer:

14% and 22%

Explanation:

The formula to compute the return on investment is shown below:

Return on investment = Net income ÷ Investment

The preparation of the return on investment analysis is shown below:

                                         Fast & Great Burgers

                                  Return on investment analysis

                            Numerator    ÷   Denominator  = Return on investment

Location A            $70,000       ÷   $500,000        = 14%

Location B            $44,000       ÷   $200,000        = 22%

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Hurricane Industries had a net income of $129,650 and paid 40 percent of this amount to shareholders in dividends. During the ye
oksano4ka [1.4K]

Answer:

a. 28390

Explanation:

Stockholders cash flow is the net of cash inflows from stockholders and cash outflows to stockholders.

Net Income = $129,650

Payout Ratio = 40%

Cash outflow

Amount of Dividend Paid = $129,650 x 40% = $51,860

Cash Inflow

Common stock issue = $80,250

Net Stockholder's cash flow = $80,250 - $51,860

Net Stockholder's cash flow = $28,390

8 0
3 years ago
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A stock had a 12 % return last year, a year when the overall stock market declined. Does this mean that the stock has negative b
ludmilkaskok [199]

Answer:

Yes it has a negative beta but this does not translate to very little risk

Explanation:

A negative beta correlation means an investment moves in the opposite direction from the stock market.

A negative beta coefficient does not necessarily mean absence of risk. Instead, negative beta means your investment offers a hedge against serious market downturns.

6 0
3 years ago
Latoya as 50 shares of stock in ABC company worth $35.75 a share, a car worth about $5,600, and a collection of figurines worth
patriot [66]

Answer:

$ 9,387.50

Explanation:

An asset is any item that the owner considers valuable.

Shares , the cars and figurines are assets as Latoya can attach a value to them.

Total value of the shares = 50 x 35.75 = 1, 787.5

Value of the car = $5,600

Figurines = $ 2,000

Total value of assets = 1,787.50+ $5,600 + $2,000

=$ 9,387.50

8 0
3 years ago
Which dr. Seuss book has sold the most copies worldwide?
likoan [24]

Answer:

Green eggs and ham

Explanation:

he sold over 8,100,000 coppies

8 0
4 years ago
SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity
PtichkaEL [24]

Answer:

(i) 1.57

(ii) 12.40%

(iii) $76,898.60

Explanation:

Debt-equity ratio = debt/equity

Hence debt= 0.57 equity

= (0.57 × 620000)

= $353,400

Total assets = debt + equity

                     = (353400+620000)

                    = $973400

1. Equity multiplier = Total assets ÷ Equity

                               = $973,400 ÷ 620,000

                               = 1.57

3.  ROA = net income ÷ Total assets

net income = ($973,400 × 0.079)

                    = $76,898.60

2. ROE = net income ÷ Total equity

= $76,898.60 ÷ 620,000

= 12.40%(Approx).

7 0
3 years ago
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