Answer:
a) Baker's profit margin = 7.5%
b) No change on return on total assets
Explanation:
a) Assets Turnover = 
= 1.6 times
Return on total assets = 
= 12%
Then we have profit margin on sales = 
= 
= 7.5%
b) In case asset turnover declined to 2 times with profit margin of 6% then Return on total assets = Asset turnover ratio X Profit Margin
= 2 X 6% = 12%
Thus there is no change in that case on return on total investments.
a) Baker's profit margin = 7.5%
b) Thus there is no change in that case on return on total investments.
Answer:
A. True
Explanation:
Hedging transactions can be described as derivative that are purchased in order to reduce investment risk of investments by using options, futures or forward contracts as insurance.
A futures market refers to a central financial exchange where standardized futures contracts are bought and sole as defined by the exchange.
Generally, positive net present value (NPV) is yielded by hedging. But the NPV will be zero or even slightly negative as when the market becomes active about the future.
Based on this explanation, the correct option is <u>A. True</u>. That is, hedging transactions in an active future market have zero.
Answer:
D. 2
Explanation:
The computation of the rate of lost demand is shown below;
Given that
p = 3
a = 4
M =2
Now
r = p ÷ a
=3 ÷ 4
= 0.75
Now determine the value from the erlang table having r = 0.75 and M = 2
= 0.123
Now,
The Rate of lost demand is
= demand rate × 0.123 × 60minutes
= (1 ÷ 4) × 0.123 × 60
= 1.845 or 2
= 2
Hence, the correct option is d.
Jacque Solis will have $37,700 left <span>after paying taxes and penalties from her $58,000 qualified plan
during the said period. </span>A
qualified plan is an employer-sponsored retirement plan that qualifies for
special tax treatment under Section 401(a) of the Internal Revenue Code.
Answer:
Nour rich aunt has promised to give you $5,000 per year at the end of each of the next four years to help you pay for college. Using a discount rate of 7%, what is the present value of the gift. If the JPEG file doesn't open, Appendix A in your book has full Present Value tables. PV.Tables-Lumo-Ann PG 54,278 $12,411 $20,000 $16.935 Table A-1 Present Value of $1 Preser Periods 1% 2% 3% 4% 5% 6% 7% 1 2 3 4 5 0.990 0.980 0.971 0.961 0.951 0.971 0.943 0.915 0.888 0.863 0.962 0.925 0.889 0.855 0.822 0.952 0.907 0.864 0.823 0.784 0.943 0.890 0.840 0.792 0.747 0.935 0.873 0.816 0.763 0.713 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 OOOOO OOOOO 6 7 8 9 10 0.942 0.93 0.923 0.914 0.905 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.672 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 Table A-2 Present Value of Ordinary Annuity of $1 Pre Periods 15 2 3% 4% 5% 65 7% 0.943 1 2 0980 1942 2.884 3.808 4.713 0.952 1.886 2.775 3.630 4.452 0.952 1859 2.723 3.546 4320 0915 1.80 2624 2673 3.065 4.212 4 5 3387 0.990 1970 2.941 3.902 4.853 5.795 6.728 7,652 8.566 4100 0.971 1.91 2620 3.712 4.580 5.417 6.210 7020 7.796 8.530 6 7 5.601 6.472 7.325 8.16 5.242 6.002 6.733 7.435 8.111 5076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.50 4.767 5.389 5.971 6.515 7.024 9 10 11 10 9.787 9.253 8760 8.306 7.39
