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Solnce55 [7]
3 years ago
15

ROE is computed as: A. Net income attributable to controlling interest / Average equity attributable to controlling interest B.

Net income attributable to controlling interest / Net sales C. [RNOA + (FLEV × Spread)] x NCI ratio D. A and B E. A and C
Business
1 answer:
Korvikt [17]3 years ago
6 0

Answer:

The correct answer is E

Explanation:

ROE termed as or stand as Return on Equity, which is described as the  profitability ratio that evaluates the firm ability for generating the profits from its shareholders investment in the company or firm.

The formula to represent ROE is value of Net Income attributable to the equity shareholders.

ROE = Net Income agter Taxes / Shareholders Equity

And there is one more formula which is a disaggregation of ROE into the non- operating as well as operating components, which is as:

ROE = [ROE +(FLEV × Spread)] x NCI

Therefore, option A and C are correct.

You might be interested in
Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book
Luda [366]

Answer:

The value of the stock at start-up = $67.5

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return  

This principle can be applied as follows:  

The value of stock today is the present value of the future return discounted at the required rate of return

The return can be computed as the ROE × Book value of share

Return = 15%× 30 =4.5

Price of stock today = D× (1+g)/r-g

D= current return, g- growth rate, r-required rate of return

DATA: D= 4.5, g= 5%, r= 12%

PV  = 4.5× (1.05)/(0.12-0.05)

= 67.5

The value of the stock at start-up = $67.5

7 0
2 years ago
What is a natural monopoly?
Lubov Fominskaja [6]

Answer:

D. A monopoly that results when one firm is able to produce at a lower cost than multiple firms, giving large firms with higher levels of output an advantage over smaller competitors.

A. Municipal Power Light, the local supplier of electricity.

Explanation: A natural monopoly is a monopoly enjoyed by a firm due to its large nature through which it is able to enjoy Economies of scale and produce at a reduced cost which other companies are unable to meet up with.

WITH A NATURAL MONOPOLY, A FIRM HAS A CONTROL OVER THE PRICE OF THE PRODUCT PRODUCED AND SERVICE RENDERED AS THERE ARE NO CLOSE SUBSTITUTE.

The municipal Power light, the local supply of power is an example of a firm that can enjoy Natural monopoly.

6 0
2 years ago
Answer you are told that metal x is a better reducing agent than metal y. this must mean that:
natta225 [31]
Metal X can dispose of unwanted materials quicker and is therefore a better reactant.  Please mark Brainliest!!!
5 0
3 years ago
"Clauss Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are en
diamong [38]

Answer:

a. $112,000

b.    $7,500

Explanation:

(a) transferred out

Units transferred out are 100% complete for both materials and conversion costs, thus multiply the Total Cost per Equivalent units with the number of units transferred.

Cost of units transferred out = $8 × 14,000 units

                                               = $112,000

(b) in ending work in process

Units of ending work in process are 100% complete in terms of materials ( since materials are entered at the beginning of the process) whilst 25% complete in terms on conversion cost (applied uniformly during production).

Cost of ending work in process

Materials ($3 × 2,000 units)                  = $6,000

Conversion ($3 × (2,000 units × 25%)) =  $1,500

Total Cost                                               = $7,500

6 0
3 years ago
a seller transfers title to a buyer with a general warranty deed. in which clause of the deed does the seller define the quality
Elis [28]

A seller transfers title to a buyer with a general warranty deed. The seller defines the quality of ownership interest conveyed to the buyer in the habendum.

Habendum is an important concept in real estate and property transactions. It may also be used in other transactions related to leases and deeds, for example in the energy sector.

A habendum clause is part of a contract that is concerned with the rights, interests, and other features of ownership that is transferred to the other party. In cases of transfer of rights, for example in relation to a coal mine, it sets out the nature of the right and its duration.

To learn more about property transactions: brainly.com/question/28171058

#SPJ4

7 0
1 year ago
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