<u>Calculation of Increase in Leverage ratio to achieve 20% ROE:</u>
The current ROE is given 15% and operating profit margin and asset turnover ratio are 8% and 1.25, respectively.
The formula for ROE is as follows:
ROE = Operating profit margin * Asset turnover ratio * Leverage ratio
We can say that :
Leverage ratio = ROE / (Operating profit margin * Asset turnover ratio)
Hence Current Leverage Ratio = 15% / (8%*1.25) = 1.5 times
Now we are asked to get ROE 20% with operating profit margin and asset turnover ratio at 8% and 1.25, respectively.
Hence,
Required Leverage Ratio = 20% / (8%*1.25) = 2 times
Hence Leverage Ratio should Increase by (2-1.5)<u> 0.5 times</u> to get the ROE of 20%
nav remain the same and the fund started the year at the Holding period return for the year.
Funding is the provision of resources to fund a need, program, or project. This is usually in the form of money, but can also be provided in the form of effort or time from an organization or business.
Generally, the term is used when a company uses retained earnings to meet its liquidity needs, whereas the term funding is used when a company raises capital from external sources. increase.
Donations, grants, savings, subsidies, taxes. "Soft Funding" or "Crowd Funding" refers to funding that does not require immediate repayments, such as donations, grants, and grants.
learn more about funding here; brainly.com/question/25887038
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Explanation:
<u>1.</u><u> How attractive is the industry? How will it's attractiveness change in the future</u>
Huawei is a Chinese telecommunications company that entered the business of selling smartphones and today is configured as the third largest smartphone manufacturing company in the world, behind only Samsung and Apple. This is an attractive market for the treatment of technological innovations so relevant to an information age that we live in today.
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<u>2.</u><u> What are the sources of Huawei's competitive advantage in the smartphone industry?</u>
The sources of Huawei's competitive advantages come from the special features that its smartphones have, such as technology interaction, fast system, product multifunctionality and chosen as the cell phone with the best camera in the world.
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<u>3</u><u>. How sustainable is their competitive advantage in the smartphone industry? What should they do to sustain its competitive advantage?
</u>
Smartphone companies must sustain their competitive advantage through technological product innovations, as consumers increasingly need digital technology to meet their desires and needs with a device that fits in the palm of the hand.
It is important that the industry has a vision of the constant transformation and adaptation that this sector requires.
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<u>4.</u><u> What role does Hauwei's global strategy play in contributing to its competitive advantage in the industry?</u>
The role of Huawei's global strategy in contributing to its competitive advantage in the sector is to supply devices with the highest technology at a competitive price, observing technological changes and anticipating the needs of consumers, offering a quality and innovative product with highest degree of technology available on the market.
Answer:
Direct labor cost= $31,200
Explanation:
Giving the following information:
Production= 48,000 units
Standard time= 3 minutes per unit
Rate= $13 per hour
First, we need to calculate the number of hours required:
The proportion of minuted per hour= 3/60= 0.05
Number of hours= 48,000*0.05= 2,400 hours
Now, the direct labor cost:
Direct labor cost= 2,400*13= $31,200
Answer:
a) operating activity (added to net income)
Explanation:
Operating activities are those activities that deals to day to day expenses and revenues i.e. salary expense, advance cash received,etc. Also it records the changes in working capital amounts
Here the receipt on dividend held on stock investment considered to be an operating activity and since it is a cash inflow so the same is to be included in the net income
Therefore option a is correct