Answer:
13.44%
Explanation:
Debt to total assets = Total Debt / Total Assets
45% = Total debt / $230,000
Total Debt = $230,000 x 45% = $103,500
As we know
Assets = debt + Equity
$230,000 = $103,500 + Equity
Equity = $230,000 - $103,500 = $126,500
Return on Equity is the measure of financial performance which can be calculated by dividing net income for the year by total shareholder's equity.
Return on equity = Net income for the year / Shareholders equity
ROE = $17,000 / $126,500 = 0.1344 = 13.44%
Answer:
The correct answer is
A) An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.
Explanation:
Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.
Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.
It is important to note that the capital remains unmodified.
Cheers
Answer:
The correct answer is option D.
Explanation:
Sanctions can be defined as penalty levied on other countries or citizens of other countries. There are a number of trade sanctions such as
- Tariffs
- Quotas
- Non-tariff barriers
- Embargoes
These trade sanctions affect both the sanctioning country as well as the sanctioned country. The imposition of trade sanctions on a country affects exports of the country. As the producers are able to supply less, there will be a reduction in producer surplus.
The imports for the consumers in the sanctioning country will decline. There will be less choice for them. This will cause a reduction in consumer surplus.
Answer:
A Journal was prepared for the receivable bad debt of a customer that owned stone bridge Electronics which us shown below
Explanation:
Solution
The first step to take in this case is to Nationalize the transaction to be recorded for the month of July 15, 2016.
A JOURNAL ENTRY FOR RECEIVABLE BAD DEBT OF $325
Particulars Debit Credit
July 15, 2016 Cash Account $325
To Bad Debt Expense $325
Note: The cash and bad debt expense are both recorded on credit and debit side of the Journal
