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My name is Ann [436]
3 years ago
6

Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity du

ring the year = $123,650. Return on equity (ROE) for the year is:A. 29.6%
B. 11.3%
C. 22.7%
D. 127.6%
E. There is not enough information to answer the question.
Business
1 answer:
Andre45 [30]3 years ago
4 0

Answer:

A. 29.6%

Explanation:

Return on Equity is the times of profit a owner can earn on the equity investment in the business. Higher ratio shows the business is more profitable.

As per given data

Net Income =  $36,610

Average Equity = $123650

Return on Equity ( ROE ) = Net Income / Equity Investment

Return on Equity ( ROE ) = $36,610 / $123650

Return on Equity ( ROE ) = 0.296

Return on Equity ( ROE ) = 29.6%

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Which statements about Section 1231 assets are true? Pick all that apply!!
dem82 [27]

Answer:

The answer is below

Explanation:

Given that Section 1231 assets are a term that is used to describe the real or depreciable trading property acquired for more than a year. For example, landed property, buildings, etc.

Hence, in this case, the correct answer or statement to the question are:

1. If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss

2. If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur

4 0
3 years ago
Fixed costs Blank______. Multiple choice question. are only as fixed as production volume remain at the same level despite chang
zheka24 [161]

Answer: remain at the same level despite changes in production

Explanation:

4 0
2 years ago
The Simon Company (SIMON) currently has $300,000 market value (and book value) of perpetual debt outstanding carrying a coupon r
Reptile [31]

Answer:

The answer is "4,750"

Explanation:

They have indeed been given the information that we require.

The current market cap for Simon Company (SIMON) is $300,000.

rate= 6%

EBIT=$150,000

The business has no plans to expand.

The current cost of capital is 8.8%,

The tax rate is 40%.

The company has 10,000 shares of common stock mostly on market.

The stock is being offered at a $90.00 per share price.

Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.

The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.

Remaining Shares= equity market value /  per share price

n =\frac{S}{P}  \\\\= \frac{\$504,000}{ \$96}\\\\= \$5,250

The initial number of shares minus the resultant number of shares equals the number of repurchased shares:

AJC will buy back a certain number of shares.

= 10,000 - 5,250\\\\= 4,750\\

8 0
3 years ago
The following book and fair values were available for Westmont Company as of March 1.
-BARSIC- [3]

Answer:

DR Inventory                                        $609,000  

     Land                                                 $1,086,750  

     Buildings                                         $2,138,250  

     Customer Relationships                $842,250  

     Goodwill                                           $965,750  

CR Accounts Payable                                           $102,000  

       Common Stock                                                       $56,400

       Additional Paid-In Capital                                     $1,353,600

        Cash                                                                       $4,130,000

Working

Common Stock = 28,200 shares * $2 = $56,400

Additional Paid in Cap = 28,200 shares * ( 50 - 2) = $1,353,600

DR Additional Paid-In Capital                            $32,400

CR Cash                                                                                $32,400

DR Professional Services Expense                   $49,800

CR Cash                                                                                $49,800

8 0
3 years ago
Last year Janet purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 20-year maturity. At the time
Firdavs [7]

Answer:

33.8%

Explanation:

Purchase price of the bond will be computed using the formula below.

p=\frac{A(1-(1+r)^{-n} }{r} + \frac{F}{(1+r)^{n} }

where A = annual coupon = 10% * 1000 = 100

r = yield to maturity = 0.1384

n = time to maturity = 20 years

F = face value = $1,000

p = price of the bond.

p=\frac{100(1-1.1384^{-20} }{0.1384} + \frac{1,000}{(1.1384)^{20} }\\p = 668.4721 + 74.8346\\p = 743.31

Therefore, if Janet sold the bond a year later for $994.79,

the profit on sale = \frac{994.79}{743.31} -1=0.3383

= 33.8% profit (rate of return).

7 0
3 years ago
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