Answer:
Option (D) is correct.
Explanation:
Return on equity:
= Return on assets × Equity multiple
= 10.3% × 2.36
= 24.308%
Profit margin:
= Net income ÷ Sales
= $20 ÷ $115
= 17.39%
Average total assets is calculated as follows:
Return on assets = Net income ÷ Average total assets
10.3% = $20 ÷ Average total assets
Average total assets = $194.17
Answer:
If you have trouble paying the loan, the lender can put a lien on the collateral (a lien is the legal term for the lender's claim to the borrower's collateral.) The lender can keep the lien active until the loan is fully paid. At that point, the lien is lifted, and the collateral ownership reverts back to the borrower.
Explanation:
Answer:
Present Value = $290.20
Explanation:
The present value of a future payment can be calculated with the following formula:
PV = FV / (1 + i)N
Where i is the annual interest rate or discount rate, and t is the number of years until the payment will be received.
PV = Present Value = ?
FV = Payment = $4,400
i = 8.3% = 0.083
N = 20 - 6 = 14
PV = $4400 / (1 + 0.083)(20 - 6)
PV = $4400 / (1.083 * 14)
PV = $4400 / 15.162
PV = $290.1992
Present Value = $290.20 (Approximated)
I think it’s A or B not sure tho
