Answer:
13.42%
Explanation:
The computation of return on equity is shown below:-
Debt = Assets × ( Debt to assets ratio)
$155,000 × 37.5%
= $58,125
Equity = Total Assets - Debt
= $155,000 - $58,125
= $96,875
Old Return on equity = Old Net Income ÷ Equity
=$20,000 ÷ $96,875
= 20.64%
New Return on equity = New Net Income ÷ Equity
= $33,000 ÷ $96,875
= 34.06%
Increased in Return on equity = New Return on equity - Old Return on equity
= 34.06% - 20.64%
= 13.42%
Answer:
The appropriate stock price is $103.97
Explanation:
Given Dividends $1 075 000 Retained Earnings $3 225 000, Shares 715 000
PE ratio 17.3, SP ?
The PE ratio is a measure of stock price relative to earnings
PE = SP/EPS
So we need to calculate earnings per share in order to get stock price
EPS = Earnings /number of shares
Retained earnings = Net Income - dividends so to get net income we add dividends to retained earnings (Earnings and net income are the same thing)
=$4 300 000
EPS = 4300000/715000
=$6.01
plug in the values in PE ratio formula
17.3 = SP/ 6.01
SP = 17.3*6.01
SP = $103.97
Answer: which includes reducing employment, using new technology to be more efficient in pumping oil
Explanation: The question involved a brief explanation of the financial crisis oil companies in the North sea are passing through as a result of falling oil prices. The option I chose, I believe is the best arranged of the list of given options.
