Answer:
The answer is D
Explanation:
The formula - Revenues / Total Assets is not one of the ways to calculate Return on Investment (ROI)
Return on Investment (ROI) is a ratio
net profit to cost of investment(total money invested the project or compnay)
The numerator must be profit while the denominator must be related to cost of Investment.
In all of the options, it is only option D that has revenue(sales) as the numerator which makes it automatically wrong.
Answer:
C. Increase
Explanation:
A bustling economy will make individuals want to take advantage of the opportunity. It’s however normal for prices of a good or service to increase when there is a huge demand for it.
In this case there was a boom in the economy which means the price of the shares he owns in the company will increase.
Answer:
The correct answer is aesthetic.
Explanation:
The aesthetics in the design of products refers to the response or reaction of people with an object, artifact or system, this response is manifested through the senses: vision, touch, hearing, taste and smell. Each one contributes to the perception of the product considering whether it is pleasant, pleasant, or if it evokes attraction in the person.
In this case, Alexandria has noticed a change in the design, which may affect your purchase decision, because you may have preferences towards a specific color.
Answer:
b) $12 million
Explanation:
The new Book Value of the firm at the bigining of next year is $12 million.
In the calulation of Net Pfofit, Interst on loan has already been deducted, so deducting it from the total calculation will be wrong.
hence, only dividend paid will be removed from the addition of the Book Value anf the Net profit.
Closing balance = Opening Book Value + Net Profit - Dividend Paid
Note - The Net Profit is already ne of interest on loan.
Closing balance = $10 + $5 - $3
Closing balance is $12
Answer: Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry.
Explanation:
We cannot authoritatively state that even though Boeing has such a high debt rate, that it is a riskier company than either Microsoft or PG&E. This is due to the drawback in ratio analysis of bias if compared across different industries.
Ratio analysis best works when comparing companies in the same industry because their situations will be similar. Comparing across industries can be misleading because different industries operate in different ways. In the Airplane manufacturing business for instance, having a high amount of debt due to having the tangible assets to back it up might be a normal thing.
The debt ratios are therefore not directly comparable because each company is in a different industry.
