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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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zavuch27 [327]

Answer:inventory

Explanation:

4 0
3 years ago
Read 2 more answers
A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of La
Oxana [17]

Answer:

The correct answer is D

Explanation:

SBU stands for Strategic business unit , it is a profit center whose focus is on the product offering and the market segment. It is usually have a marketing plan which is discrete, marketing campaign and analysis of competition, though it is a part of larger business entity.

So, the private university facing financial problems, they decided to become a profit center. Therefore, this scheme is parallel to SBU which is Strategic business unit.

6 0
3 years ago
he following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal o
maxonik [38]

Answer:

Explanation:

1) Total direct costs for the Apparel Department $128750:

Total Direct costs of Apparel Department  

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Apparel Department manager's salary - Evendale store $11,800

Direct costs  $128,750

2) Total direct costs for the Evendale Department $173,800:

Apparel Department cost of sales - Evendale store $105,600

Store manager's salary - Evendale store $12,300

Apparel Department sales commission - Evendale store $11,350

Store utilities - Evendale store $19,200

Apparel Department manager's salary - Evendale store $11,800

Janitorial cost - Evendale store $13,550

Direct costs - Evendale store $173,800

3) Total direct costs for the Apparel Department that are also variable costs- $116950 :

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Direct variable costs - Apparel Department $116,950

4 0
3 years ago
Key West To Go, located in Key West, Florida, builds and sells scooters. These are sold to several local shops in the area, who
beks73 [17]

Answer:

d. 42.90 hours

Explanation:

y = aQᵇ

y = average time to produce one more unit

a = the time it took to produce the first unit

Q = cumulative production

b = learning rate = [(log learning rate in %) / log 2] = -0.152003093

learning rate in % = 10.8 / 12 = 0.9 = 90%

cumulative quantity             average hours per unit               total hours

1                                                    12                                               12

2                                                   10.8                                            22.8

3                                                   10.38                                          33.18

4                                                   12 x 4⁻⁰°¹⁵²⁰⁰³⁰⁹³ = 9.72            42.90

3 0
3 years ago
Recession, inflation, and high interest rates are economic events that are best characterized as being Group of answer choices i
katrin2010 [14]

Answer:

among the factors that are responsible for market risk.

Explanation:

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.

5 0
3 years ago
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