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suter [353]
3 years ago
9

Calculate the ROE using the Strategic Profit Model for a company with the following data: Profit margin = 12% Total asset turnov

er = 1.4 Inventory turnover = 0.7 Equity multiplier = 1.3 Current ratio = 1.1
Business
1 answer:
Svet_ta [14]3 years ago
7 0

Answer:

≅ 21.8%

Explanation:

The Return on Equity can be calculated by ,

ROE = Net Profit Margin × Return asset × Financial leverage

Net profit margin = Profit margin = 12%

Return Asset = Total Asset turnover = 1.4

Financial leverage = Equity Multiplier = 1.3

Therefore,

ROE = 12 × 1.4 × 1.3

       = 21.84% .

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Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6%
dezoksy [38]

Answer:

The answer is "\$11.62 \ (approx)"

Explanation:

Using formula:

\text{Required return=risk free rate}+\text{beta}\times \text{(market rate-risk free rate)}

=5+(13-5) \times 1.2\\\\=14.6\%\\\\\text{Intrinsic value}=\frac{D_1}{\text{(Required return-Growth rate)}}\\\\= \frac{1}{(0.146-0.06)}\\\\= \frac{1}{(0.140)}\\\\=\$11.62\ (Approx)

7 0
3 years ago
Bob sold goods for $100 to a charge customer. The customer returned for credit $ 50 worth of goods. Terms of the sale were 3​/10
aev [14]

Answer:

The customer should​ pay $48.5

Explanation:

Terms of sale 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

As per given data

Sale = $100

Sales return = $50

Receivable = $100 - $50 = $50

As the payment is made within discount period, so discount will be availed on the amount due

Discount = $50 x 3% = $15

Payment by Customer = $50 - $1.5 = $48.5

5 0
3 years ago
According to low estimates, we see advertisements every _____ minutes.
QveST [7]

Answer:

4

Explanation:

Its every 4 mins we see ads

8 0
3 years ago
Managing Organization
pishuonlain [190]

Answer:

Answer explained below

Explanation:

In determining the next big market to expand, the firm should do an analysis of the strengths and weaknesses of the company and also should try to understand the opportunities and threats that the external world would present to the company. This can be accomplished by using a SWOT analysis and by aligning the strengths with the opportunities, the firm can zero down on the potential opportunities.

Next the firm can also do an analysis of the internal culture of the firm and also do a PESTLE analysis of the potential markets so that a mapping of the political, economic, technological and cultural factors can be done and it can studied which market is the closest to the current market across dimensions. Once the closest target market is identified, it can then decide to expand into that market.

As per the analysis, it would be beneficial for the firm to expand into a market where the spending power of the consumer is similar to US and there is a certain degree of cultural similarity. So such a candidate market could be United Kingdom.

The process followed for determining the potential market is:-

1) Determining internal strengths and weakness.

2) Access external market opportunities and threats

3) Determination of potential markets.

4) Undertaking a PESTLE analysis and determining the most suitable market by choosing the market which is most similar in all dimensions to the current market.

The risks of the plan is that there could be unforeseen events or disruption which may make the choice unviable or incorrect. Moreover it is slow and exhaustive process, so go to market may be slow.

The advantages are that all pros and cons are evaluated and so chances of success and risk mitigation is high.

7 0
3 years ago
June 1 Beginning inventory 20 units at $19 $ 380 June 7 Purchases 70 units at $20 1,400 June 22 Purchases 10 units at $23 230 $2
Vadim26 [7]

Answer:

Option (d) is correct.

Explanation:

Given that,

June 1 Beginning inventory 20 units at $19 = $ 380

June 7 Purchases 70 units at $20 = 1,400

June 22 Purchases 10 units at $23 = $230

Cost of goods available for sale = $2,010

On June 30, units on hand = 30 units

Cost of Ending inventory:

= (20 units × $20) + (10 units × $23)

= $400 + $230

= $630

Total cost of goods sold:

= Cost of goods available for sale - Cost of Ending inventory

= $2,010 - $630

= $1,380

6 0
2 years ago
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