Answer:
Explanation:
Net Income = 20m
Sales = 100m
Debt-equity ration = 40%
Asset turnover = 0.60
A)
Profit Margin = Net Income / Sales = $20 million / $100 million = 20%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%
B)
Debt-equity ratio = 60%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%
As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)
Answer and Explanation:
In the monopolistic market structure, there are many producers, sellers and consumers due to which the business does not have total control over the price of the market. In this market structure, there are barriers to entry and exit
As in this market structure, there are a various product that is differentiated that results in non-perfect elastic demand. Also, every firm has their own prices and products so the demand curve should be downward sloping
Answer:
Debit Accounts receivable $3,000
Credit Consulting Revenue $3,000
Explanation:
Based on the information given if the company provides consulting services and bills its customer the amount of $3,000 for these services the appropriate journal entry On December 31 will be:
On December 31
Debit Accounts receivable $3,000
Credit Consulting Revenue $3,000
Answer: d
Explanation: The service station will most likely pass along the tax to you adding the 10cents/ gallon.
This is because the service station was established mainly for profit and will have to work hard to reduce or eliminate any extra cost t it self.
Answer:
service is doing work to someone,:
----is supplying public a public needs example: tramsport
-----is emplyment as a servant
-------perios of employment with company or organization