Because the return on shareholders' equity is based on the book value of equity, analysts often supplement their understanding of the return to shareholders with the no change in return on shareholder Equity, but see other less tangible benefits.
Therefore, Because the return on shareholders' equity is based on the book value of equity, analysts often supplement their understanding of the return to shareholders.
Stockholders' equity is often referred to as the book value of the company and it comes from two main sources.
Analysts means guidance to businesses, government entities and individuals on financial and business decisions.
Tangible refers to the capable of being perceived especially by the sense of touch.
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Answer:
c. Investment spending by businesses varies inversely with the interest rate.
Explanation:
The relationship described in the question is known as inverse or negative relationship.
An inverse relationship occurs when two variables move in the opposite direction. That is, as variable A increase, variable B decreases. Conversely, as variable A decreases, variable B increases. This different from a positive relationship which occurs when two variables move in the same direction. That is, as variable A increase, variable B too increases. Conversely, as variable A decreases, variable B also decreases.
From the question, a continuous increase in total investment by $10 billion as the interest rate falls successively by 4 percentage point is an example of an inverse or negative relationship. From this, it can also be inferred that total investment will continue to fall by $10 billion as the interest rate rises successfully by 4 percentage point.
Therefore, the verbal statement that "investment spending by businesses varies inversely with the interest rate" is an accurate description of the relationship between the investment and the interest rate.
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The conversion cost per unit of the inventory comes out to be $2.63.
<h3>What is a conversion cost?</h3>
A conversion cost is computed by adding the production overheads to the direct labor in the production process.
Given values:
Physical units: 155,000
Conversion cost: $413,370
Units in ending inventory: 1900 (3,800 X 50%)
Computation of conversion cost per unit:
Therefore, $2.63 is the conversion cost per unit on the inventory.
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Answer:
C. synergies
Explanation:
Synergy in business refers to the creation of interaction between organisations that combine their efforts, and resources together to accomplish more together than they can separately.
organisation can get more done working together than they can working apart. The effects of synergy can also boost employee morale, amplify customer satisfaction, improve competitive advantage, and expand market share.
Therefore if two organisations pool market and expertise that result in lower cost and generate profit it is referred to as synergies