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Soloha48 [4]
3 years ago
14

Gardial & Son has an ROA of 11%, a 2% profit margin, and a return on equity equal to 17%. What is the company's total assets

turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places.
Business
1 answer:
bezimeni [28]3 years ago
4 0

Answer:

Total assets turnover = 5.5

Equity multiplier = 1.55

Explanation:

The return on assets (ROA = 11%) is defined as the profit margin (2%) multiplied by the total assets turnover (TAT):

0.11=0.02*TAT\\TAT = 5.5

The return on equity (ROE = 17%) is defined as the product of the return on assets (ROA = 11%) by the equity multiplier (EM):

0.17=0.11*EM\\EM=1.55

The company's total assets turnover is 5.5

The firm's equity multiplier is 1.55

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When Coca-Cola purchased first a part and then all of Honest Tea, what would have been appropriate ways to help this change be s
tensa zangetsu [6.8K]

Answer:

The most applicable choices in the order of importance are

C, B then A. Of course, they have to be applied at various stages of the acquisition.

Explanation:

C should have occurred (if possible) before the acquisition. Usually, when there is a major acquisition such as the one described above, it comes with good and bad tidings.

In some cases, especially one involving a large and efficient system like Coca-Cola, many positions become redundant.

In other cases, people are worried if their compensation will be affected. There are usually questions such as:

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Thus, executing a survey of Honest Teas' employees to identify such sources of anxiety and conflict related to the acquisition with the goal to address them constructively, will help the change to be successful.

Option B is one strategy that ought to have been executed upon the conclusion and official announcement of the acquisition exercise. This is the most crucial and maybe the most important part of the acquisition/takeover process.

This is true especially if there is going to be changes in management,  communication styles, and the culture.  Other benefits of team building excercises are, it increases and or improves:

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Option C: On the balance of probability, it is expected that when a bigger company like Coca-Cola acquires a smaller one, the process comes with a lot of benefits. One of such benefits is the payroll upgrade.

After all is said and done, it will serve to boost the motivation and morale of the staff if Honest Tea began to use Coca-Cola's payroll which is likely to be more robust.

Because Cocal-cola is an older, more experience and more global company, it is more likely to have more efficient reimbursement systems. If these are inculcated into the Honest Tea process, with adequate training on how to use it, it will also serve to ensure homogeneity of systems and operations which is critical to the success of an acquisition.

Cheers!

3 0
2 years ago
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Author, creation, and modification dates, as well as file size, are some instances of basic metadata. Unstructured data like pictures, videos, web pages, spreadsheets, etc. are also utilized with metadata. Meta tags are a common way for web pages to contain info.

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3 0
1 year ago
Which of the following statements about recessions is false?
drek231 [11]
The correct answer is choice D- 

It not true that a <span>recession is usually no longer than six months. A recession van be longer than 6 months (it takes a 6 months fall in real GDP for a recession to occur), but </span>a recession generally<span> does </span>not<span> last </span>longer than<span> a year. Beyond a year, the situation is much severe, and is called an economic depression.</span>
7 0
2 years ago
Read 2 more answers
One reason a long-tenured top-level manager may hesitate to conclude the firm's structure is a problem is that doing so: a. sugg
uysha [10]

Answer: suggests that the firm's previous choices were not the best ones.

Explanation: For a long-tenured top-level manager to make such proclamation, shows the inefficiencies of the firm which he is a part of. He obviously has been with the firm for a very long time and making that proclamation will also be a dent in his image as a manager.

8 0
3 years ago
In what circumstances is it most important to use multistage dividend discount models rather than constant-growth models?
patriot [66]

Answer:

when valuing companies with temporarily high growth rates.

Explanation:

Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).

These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.

If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.

Multistage dividend growth models

It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.

The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.

5 0
3 years ago
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