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3 years ago

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return on equity and earnings per share are both classified as _____ ratios. answer a. profitability b. current c. asset managem

ent d. liquidity

1 answer:

Wittaler [7]3 years ago

8 0

A.profitability ?

I never took business but in accounting we calculate Return on capital employed and it's a measure of profitability.

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For teenage employees, what is the best explanation for why their first job is rarely, if ever, their dream job?

Lemur [1.5K]

Dream jobs are mostly complex jobs that require alot of effort and time to achieve. The main way to achieve their dream jobs is to dedicate themselves to it and keep striving towards their goal.

5 0

3 years ago

A company’s dividend is expected to grow at 20% for the next six years. After that, the growth is expected to be 3% forever. If

Fittoniya [83]

Answer:

Price of share at end of year 6 = $43.94

Explanation:

Provided information we have,

Current dividend = $1

Growth rate for 6 years = 20%

Dividend at end of year 6 = $1 $\times$ Future value factor of $1 @ 20% for 6 years = $1 $\times$ 2.985984 = $2.986 rounded off

After this dividend is supposed to grow at 3% thus Dividend at end of year 7 = $2.986 + 3% = $3.076

Therefore, using dividend growth model we have,

$P_6 = \frac{D_7}{Ke - g}$

Where P6 = price at end of period 6 = to be calculated

D7 = Dividend paid at end of year 7 = $3.076

Ke = Required rate of return = 10%

g = constant growth rate = 3%

Thus, $P_6 = \frac{3.076}{0.10-0.03}$

P6 = $43.94

Thus, price of share at end of year 6 = $43.94

4 0

3 years ago

Which best describes the Government and Public Administration career cluster?

andriy [413]

This career cluster creates laws to protect citizens

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4 years ago

Read 2 more answers

Explain, in your own words, the rationality assumption, and contrast it with the assumption of bounded rationality proposed by a

elixir [45]

Answer:

Rationality assumptions state that people do not knowingly take the decisions that may incur a loss to them. These are the decisions taken on the self-interest and self-motivation of the decision-maker.

Bounded rationality basically tones down a lot of the assumptions that go into homo economicus. Satisficers are a more diverse bunch, with unique tastes and preferences that change over time. Satisficers are not particularly good at making consistent decisions or predicting the consequences of their choices. They often decide things, not out of calculated self-interest, but for other reasons, social norms, ethics, fairness, love, peer pressure, and so on. Sometimes they even decide things on a whim, with little or no thought of the consequences.

Explanation: The assumption of bounded rationality suggests that people might use rules of thumb to guide their decision making because people can not examine every possible choice available to the. While the; rational choice theory states that individuals rely on rational calculations to make rational choices that result in outcomes aligned with their own best interests.

4 0

4 years ago

Read 2 more answers

Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $389,610 for real estate with land, land impr

polet [3.4K]

Answer:

1. Land $175,324.50

Land improvements $38,961

Building $175,324.50

2. Dr Land $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Land

Dr Land improvements $38,961

Cr Cash $38,961

Being entries to recognize cost incurred in the purchase of Land improvements

Dr Building $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Building

Explanation:

Using the appraisal method to apportion the cost of an asset to the components of the asset involves the consideration of the appraised cost of each individual item as a portion of the total cost of the asset.

Thus, given that Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building

Appraised cost of

Land = $247,500

Land improvements = $55,000

Building = $247,500

Total appraised cost of the asset = $247,500 +$55,000 + $247,500

= $550,000

Allocated cost of;

Land = $247,500/$550,000 * $389,610

= $175,324.50

Land improvements = $55,000/$550,000 * $389,610

= $38,961.00

Building = $247,500/$550,000 * $389,610

= $175,324.50

Journal entries

Dr Land $175,324.50

Cr Cash $175,324.50

Being entries to recognize cost incurred in the purchase of Land

For journal entries, we debit each of the individual assets account and credit cash to recognize the cost incurred in the purchase of the asset.

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3 years ago