Answer:
Pelican's debt ratio 9%
Timberland's debt ratio 50%
The times interest earned ratio for Pelican 57.5
The times interest earned ratio for Timberland 10.45
C is correct as Pelican has 57.5 times interest earned ratio while Timberland only 10.45 times.in other words,earnings of Timberland is more volatile.
D is also correct ,since it has financial leverage of 50.46% as against Pelican financial leverage of 9.17%
The operating margin for Pelican is 14.76% while the operating margin for Timberland is 13.8%
Return on total assets for Pelican is 36.9% and that of its competitor is 34.5%
The return on equity for Pelican 40.6% and that of Timberland is 69.6%
C is correct as Pelican is more profitable than Timberland as shown by the higher net profit margin and return on assets
B is correct, even though Pelican is more profitable (higher net profitmargin), Timberland has a higher ROE than Pelican due to the additional financial leverage risk.
Explanation:
All of the ratios requested for are found in the attached spreadsheet.
The correct answer should be a fatalist decision maker
A I think would be the best answer. Like a picture or explanation on a slideshow.
Answer:
Net Fixed Assets remains fixed
Explanation:
The reason is that the company will not desire to increase its investment if the net fixed Assets does not increases the production capacity so the net fixed assets will remain the same for period. The depreciation will be the same for the year required it is not production dependant. Net fixed assets also doesn't changes with the changes in production and debt to equity level. It remains fixed for the period.
Answer:
Option (B) is correct.
Explanation:
Producer surplus is defined as the difference between the current market price of a good and the amount or cost incurred by the firm to produced the good. If the producer will be able to get the higher price for a good than the full cost of production of that good then he will earn the producer surplus.
Graphically, the producer surplus is represented by the flat top.
