Answer:
a) Profit Margin= 4.17%
b) Debt to Capital Ratio= 66.67%
Explanation:
<u>The question is divided into two parts: the first is to calculate the profit margin and then the second is to calculate the debt to capital ratio</u>
Given information:
Sales to Total Asset (Asset turnover) = 1.2x (meaning sales covers total assets 1.2 times)
Return on Assets (ROA) (Net income/Total Assets) = 5%
Return on Equity (ROE) (Net Income/Equity) = 15%
a) calculate the profit margin
The formula for profit margin according to the question
= Return on Assets (ROA) / Asset Turnover
= (Net income/Total Assets) ÷ Sales/Total Assets
= 5% (0.05)/ 1.2
=0.0416667= 4.17%
b)Debt to Capital Ratio
= Debt/ Total Invested Capital
According to the Question the following is assumed
Asset= Debt + Equity
Debt= Asset - Equity
To calculate Equity is to find the percentage of Total Assets that is from Equity as follows:
ROA/ROE = 0.05/0.15= 0.333333
This means 0.3333 of Total asset accounts for equity.
Debt= Asset - Equity
Debt= 1- 0.3333
Debt to capital is therefore= 0.666667 or 66.67%
Answer:
Federated Deposit Investment Corporation (FDIC) is the correct answer.
Explanation:
Answer:
A price floor of 75 cents per pound
Explanation:
Price floor is the legal minimum price set by the government as a price control mechanism of which can be paid for a good, service or labor. It means, the price of a particular good or service cannot fall below the stipulated price given.
In the case where a floor price is set above the equilibrium price (i.e. the price set is higher than the equilibrium price), the quantity supplied would surpass the quantity demanded, which would result in surplus of the goods. Supply exceeds demand.
- If market equilibrium price is 50 cents per pound of banana, and quantity supplied is 10 pounds, <em>setting a price floor of 75 cents per pound (higher than equilibrium price of 50 cents), would result in excess supply. Meaning, more supply of bananas while quantity demanded falls, causing surplus of banana.
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Answer:
Technological Change and Individual's abilities to understand/adapt to the change in technology
Explanation:
The combination of two factors were the forces that created an opportunity for Robert Stephens to start the Greek Squad.
<u>Technological Change</u>
The technology had changed by introducing products such as computers, telephones, entertainment systems and software. This change began rapidly both in terms of innovation and complexity.
<u>Individual's abilities to understand/adapt to the change in technology</u>
He noted that the people around needed guidance to undertand this technological change such as how it works, how to install the programs and how to operate it without ever reading the manuals/instructions provided to them.
He is destined to arrange from an organization inside the European Union in light of the fact that there would be no hindrances to exchange. The major motivations behind the European Union are to advance more noteworthy social, political and financial amicability among the countries of Western Europe. The EU reasons that countries whose economies are associated are more averse to take part in strife.
