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Dafna11 [192]
3 years ago
6

The financial statements of Friendly Fashions include the following selected data (in millions):

Business
1 answer:
Anni [7]3 years ago
8 0

Answer:

Friendly Fashions:

Ratios Calculations in 2018:

1) Return on Equity = Net Income divided by Equity x 100

Return on Equity = $170/$1,780 x 100 = 9%

2) Return on the market value of equity = share price/average shares outstanding = $8/710 x 100 = 1.12%

3) Earnings per share = Net Income divided by average shares outstanding = $170/710 = $0.24

4) Price-earnings ratio = Market value per share/Earnings per share = $8/$0.24 = $33.3

Explanation:

1) Return on Equity: The return on equity is a measure of the financial performance of an entity, which evaluates the effectiveness of management in using assets to create profits.

2) Return on the market value of equity: This measures the profit yield on the stock market capitalization.  It measures the intrinsic value of a stock by comparing the share price to the number of shares outstanding.  It is also called the market capitalization.

3) Earnings per share: This is a measure of a company's profitability.  It can be used as an indicator to pick stock to buy.  To determine the net income used for this calculation, it is necessary to deduct the dividend of preferred stock, where it exists, before arriving at the net income.

4) Price-earnings ratio: This company valuation method measures the share price relative to the earnings.  It is also called the price multiple and earnings multiple.  It shows how much an investor can pay in dollars in order to earn a dollar of earnings.  It also indicates if a stock is overvalued or undervalued.

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In the short​ run, the marginal cost of the first unit of output is​ $20, the marginal cost of producing the second unit of outp
Alinara [238K]

Answer:

Hence, the  firm's total variable cost of producing three units of output​ is $48 unit.

Thus, the correct option is d. $48 unit.

Explanation:

The computation of total variable cost is shown below:

= marginal cost of the First unit of output + marginal cost of the second unit of output + marginal cost of the third unit of output

= $20 + $16 + $12

= $48

The variable cost include all type of cost which is change when the production level changes. In the given question, the output level changes with the unit which reflects the variable cost. So, the cost would be added in the computation part.

Hence, the  firm's total variable cost of producing three units of output​ is $48 unit.

Thus, the correct option is d. $48 unit.

6 0
3 years ago
A long-term partnership correlates with health and happiness throughout adulthood and late adulthood. For most people, then, ___
Aloiza [94]

Answer:

Commitment

Explanation:

It can be defined as an agreement to do something in the future. It is a relationship among two or more people which is based on a mutual and agreed commitment to one another and includes trust, honesty, love. The different forms of committed relationships are close friendship, marriage, and civil unions.

5 0
3 years ago
On February 1, you bought 100 shares of stock in the Francesca Corporation for $42 a share and a year later you sold it for $46
Luden [163]

Answer:

12.381%

Explanation:

For computing HPY and HPR, the formula is same which is given below:

The formula to compute the HPY is shown below

= Dividend income + (Selling price - purchase price) ÷ purchase price

= ($1.20 + $46 per share - $42 per share) ÷ $42 per share

= ($1.20 + $4 per share)  ÷ $42 per share)

= $5.20 per share ÷ $42 per share

= 12.381%

6 0
3 years ago
What is one of the advantages of buying an existing business?
leonid [27]
You don't have to pay for construction and people are already aware of the business's existence.
4 0
3 years ago
Suppose Hamilton decides that if the price of their blenders is $32, the quantity demanded will be 1,000 units, and if the price
olya-2409 [2.1K]

Answer:

-2.5

Explanation:

Elasticity of demand measure the responsiveness of demand against the change in price of the product. It shows how much demand changes if there is the change in price.

Change in Quantity = ( S2 - S1 ) / [ ( S2 + S1 )/2 ]

Change in Quantity = ( 800 - 1,000 ) / [ ( 800 + 1,000 )/2 ]

Change in Quantity = -200 / 900

Change in Quantity = -0.2222222

Change in price = ( P2 - P1 ) / [ ( P2 + P1 )/2 ]

Change in price = ( $35 - $32 ) / [ ( $35 + $32 )/2 ]

Change in price  = $3 / $33.5

Change in price  = 0.090

Elasticity of Supply = Change in Quantity / Change in Price

Elasticity of Supply = -0.2222222 / 0.090 = -2.5

Elasticity of Supply = 0.597 = 0.60

8 0
3 years ago
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