Answer:
ROE would have changed by 8.52%
Explanation:
First we calculate the current ROE using Dupont Equation which gives ROE as,
ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity
or
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier
- Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%
The condition says that the net income could have increased to 20850 but other factors will remain constant. Thus, to calculate new ROE, we will calculate the new Net Profit margin but the total assets turnover and the equity multiplier will remain constant as sales assets and capital structure is not changing.
- New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
- The ROE would have changed by 17.32 - 8.80 = 8.52%
Answer:
None of the given options.
Depreciation expense for year 1 would be $37,500.
Explanation:
Cost = $400,000
Residual value = $50,000
Expected hours = 40,000
Working hours (year 1) = 6,000 hours
Now,
Depreciation per hour = 
Depreciation per hour = 
Depreciation per hour = 
Depreciation per hour = $6.25
Depreciation expense (year 1) = Depreciation per hour × Working hours (year 1)
Depreciation expense (year 1) = $6.25 × 6,000
Depreciation expense (year 1) = $37,500
Answer:
There are two primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset. First, a firm should determine if the intellectual property has value in the marketplace. Second, a firm should determine if its intellectual property has value in marketplace.
Explanation:
An intellectual property is anything that is as a result of creativeness and has value in the marketplace. They are Four Key Forms of Intellectual Property which are patents, trademarks, copyrights, and trade secrets . Intellectual property laws are made to encourage creativity and inventiveness by granting to individuals who spent their time and money in creative endeavors exclusive rights for a period of time so as to benefit from their creativity.
There are two primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset. First, a firm should determine if the intellectual property has value in the marketplace. Second, a firm should determine if its intellectual property has value in marketplace.
In Keynes's view, a short-term budget deficit due to government spending or tax cuts is "sometimes necessary to help stimulate the economy".
Keynesian economics which is also known as Keynesianism depicts the theories related to economics presented by John Maynard Keynes. Keynes said capitalism is a decent financial framework. In a capitalist framework, individuals procure cash from their work. Organizations utilize and pay individuals to work. At that point individuals can spend their cash on things they want.
The overall system<span> of </span>taxation<span> in the </span>United States<span> is progressive. </span>
