Answer: 5.9%
Explanation:
Before:
Equity is calculated as:
= Total Assets / Equity Multiplier
= $ 175,000 / 1.2
= $ 145,833
Therefore, ROE will be:
= (Turnover × Profit Margin) / Equity
= ($ 395,000 × 5.3%) / $ 145,833
= $ 20935 / $145,833
= 0.1436
= 14.36%
After:
New Total Assets will be:
= $ 175,000 - $ 51,000
= $ 124,000
Equity
= Total Assets / Equity Multiplier
= $ 124,000 / 1.2
= $ 103,333
ROE will then be:
= (Turnover × Profit Margin) / Equity
= ($ 395,000 × 5.3%) / $ 103,333
= $ 20935 / $ 103,333
= 0.2026
= 20.26%
Therefore, the change in ROE will be:
= 20.26% - 14.36%
= 5.9%
= 4.035%
Answer:
The correct answer is 45%.
Explanation:
According to the scenario, the given data are as follows:
Selling price = $640
Variable cost = $352
Annual fixed cost = $985,500
Current sales volume = $4,390,000
So, we can calculate the contribution margin ratio by using following formula:
Contribution margin ratio = (Contribution margin per unit ÷ selling price per unit ) × 100
Where, Contribution Margin = Selling price - Variable cost
= $640 - $352 = $288
So, by putting the value in the formula, we get
Contribution margin ratio = ( $288 ÷ $640 ) × 100
= 0.45 × 100
= 45%
Answer:
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
Explanation:
a.
The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.
b.
When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.
c.
The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.
d.
Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.
A number that can be added but idk do u know because im bored and have home work and all fs so i need help im home schooled
The reason for risk pooling which is beneficial for the insurance industry is best described as it brings together many individuals' premiums so that there is money to cover a selected few losses.
Option B is the correct answer.
<h3>Who is a policyholder?</h3>
The policyholder is an individual who takes an insurance policy from an insurance company. He pays insurance premiums against their respective policies.
The insurance contract is an agreement between the individuals and insurance company to indemnify them at the happening of the specified event and individuals also agreed to pay the insurance premiums on time. The risk pooling allows the insurance company to get insured many people against a small amount of money called an insurance premium.
Therefore, risk pooling is valuable for the insurance company in respect of the insurance policies.
Learn more about the insurance in the related link;
brainly.com/question/14969988
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