Answer:
The company's net operating income for the year was: $60,000
Explanation:
Return on investment (ROI) is calculated by using following formula:
ROI = Net income/Total investment
Net Income = ROI x Total investment
Investment Turnover Ratio = Net Sales/(Stockholders' Equity + Debt)
or
Investment Turnover Ratio = Net Sales/Total investment
Total investment = Net Sales/Investment Turnover Ratio
The company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%.
Net Income = ROI x Total investment = ROI x Net Sales/Investment Turnover Ratio = 36% x $400,000/2.4 = $60,000
Answer:
labor
Explanation:
They are four factors of production. They are labor, capital, land, and entrepreneurship.
Labor is compensation for human skills, knowledge, time, and energy. It is indicated as salary, wages, commissions, or allowances in the books of account. A company's labor expense is influenced by the number of workers it requires. A planned high output will require many workers, while a low-volume production needs fewer workers. Therefore labor is considered a variable cost.
Capital includes the finances, equipment, and machinery required to start a business. Capital is a fixed cost as capital requirements do not vary will the volume of output. Land and entrepreneurship are fixed costs as they are not expected to change in the s
Answer:
The correct answer is: The expected rate of return for the stock would be around 7%.
Explanation:
The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.
In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.
Answer:
Forey competes in a Monopolistic Industry.
Explanation:
An industry wit high degree of competition reflects either a perfectly competitive market structure or a monopolistic competitive one. The company in question operates in competition with many other firms in an industry where entry has been easier to allow many firms to enter and operate.
The four-firm concentration ratio and Herfindahl-Hirschman Index are small which suggests absence of concentration.
Rothschild Index for this industry is significantly greater than zero which indicates that this industry cannot be perfectly competitive.
Therefore, the market structure that best characterizes the industry in which Forey competes is a MONOPOLISTICALLY COMPETITIVE one.
They control a country's foreign exchange reserves and set its monetary policies.