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2 years ago

Which of the following statements is TRUE? (economics)

Business

1 answer:

Angelina_Jolie [31]2 years ago

6 0

Answer:

Explanation:

Banks are other lending entity's has access to a customer borrowing history. Through credit rating agencies, a bank can know whether a customer has a bad history in making loan repayments.

When a customer takes up a loan, banks share that information with a credit rating agency. The agency updated its records with the customer's national identity, such as the social security number. The banks keep on updating agencies on how each customer is meeting their obligation. Credit card payments are considered as loans.

Credit agencies rates each customer creditworthiness by assessing how they been repaying their debts. A higher credit score means the customer repays his loans promptly without missing installments. The information of each customer is available to all banks and lenders upon request.

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Imagine an influential new study shows that eating eggs drastically reduces the risk

sweet-ann [11.9K]

The correct answer would be d

3 0

1 year ago

The Nasdaq Composite Index: a. is made of of mainly newer, smaller firms. b. is a price-weighted index. c. is made up of over 50

rodikova [14]

Answer:

A. is made of of mainly newer, smaller firms.

Explanation:

4 0

3 years ago

Jack corp. Has a profit margin of 5.1 percent, total asset turnover of 2.3, and roe of 19.64 percent. What is this firm's debt-e

anygoal [31]

Answer: Jack Corp's D/E ratio is 0.67.

We follow these steps to arrive at the answer:

We begin with the DuPont Identity for Return on Equity (RoE)

$RoE = Net Profit Margin * Asset turnover Ratio * Equity Multiplier$

Substituting the values from the question in the DuPont identity we get,

$0.1964 = 0.051 * 2.3 * Equity Multiplier$

$Equity Multiplier = \frac{0.1964}{0.051*2.3}$

$Equity Multiplier = 1.674339301
$

$Equity Multiplier = \frac{Total Assets }{Equity}$

So,

$\frac{1}{Equity multiplier} =\frac{Equity}{Total Assets}$

Substituting the value of equity multiplier in the formula above we get,

$\frac{Equity}{Total Assets} = 0.597250509$

Now,

$\frac{Equity}{Total Assets} + \frac{Debt}{Total Assets} =1$

So,

$\frac{Debt }{Total Assets} = 1 - \frac{Equity}{Total Assets}$

$\frac{Debt }{Total Assets} = 1 - 0.597250509
$

$\frac{Debt }{Total Assets} = 0.402749491
$

Now that we have the proportions of debt and equity to total assets, we can find the Debt Equity (D/E) ratio as follows:

$\frac{D}{E} = \frac{\frac{Debt}{Total Assets}}{\frac{Equity}{Total Assets}}$

Substituting the values we get,

$\frac{D}{E} = \frac{0.402749491
}{0.597250509
}$

$\frac{D}{E} = 0.674339301
$

3 0

3 years ago

The purpose of cascading the balanced scorecard throughout the organization is: _____________

frez [133]

Answer:

b. To ensure strict hierarchical control of the organization.

6 0

2 years ago

The top management of Kryptos Inc., a supplier of office stationery to large IT corporations, is involved in a meeting with its

liubo4ka [24]

Answer:

Jury of Executive Opinion

Explanation:

Jury of Executive Opinion method of sales forecasting employs the views of to management in various section. They are are experienced and have good knowledge of the market factors and are able to predict the expected sales. They are able to forecast sales figures through estimates and previous experiences. All internal and external factors are taken into account. Their judgements are pooled together and averaged in drawing the sales forecast of Kryptos Inc.

8 0

3 years ago

Read 2 more answers