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Mama L [17]
3 years ago
8

King enterprises has an Total Asset Turnover ratio of 5.0, Profit margin of 3%, and a ROE equals to 18%. What is the firm's equi

ty mulitplier (Total Asset/Equity)? Use DuPont Analysis.
Business
1 answer:
LenaWriter [7]3 years ago
5 0

Answer: 1.2

Explanation:

The DuPont Analysis is a method of calculating the Return on Equity by using various other ratios. It shows the relatiosnhips between variables in a firm and can help the firm know which areas to target to improve ROE.

Using the DuPont Analysis, the Return on Equity is;

ROE = Profit Margin * Asset Turnover * Equity Multiplier

18% = 3% * 5 * Equity Multiplier

18% = 0.15 * Equity Multiplier

Equity Multiplier = 18%/0.15

Equity Multiplier = 1.2

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Assess the formation of Global One, Unisource, and other partnerships in this case. What strategic factors might have influenced
Nina [5.8K]

Answer: Global One was a union between Sprint, Deutsch telecom and France telecom it's purpose was to provide telecommunication services to multinationals.

Explanation:

Global One, Unisource and other partnership are created for a multitude of reasons. Global One was a union between Sprint, Deutsch telecom and France telecom it's purpose was to provide telecommunication services to multinationals. Sprint used the strategy as an way of entering foreign countries which was based on political and legal environment they faced there. These issues impacted AT&T's decision to partner with Unisource as regards joint venture. While AT&T would’ve preferred to partner with French or German telephone companies, European overseers would not approve this deal,fearing their size and strong brand name gaining influence over them and their chances of growing

8 0
3 years ago
In which step of the learning and development process does the employer identify if there are gaps in what new employees need to
agasfer [191]

Answer:

identifying learning needs

Explanation:

The step of the learning and development process where the employer identify if there are gaps in what new employees need to know and if those gaps can be filled by learning and development is the identification stage.

The learning and development process starts with the identification stage, Identifying learning and development (L&D) needs is based on an assessing levels of employee skills, attitudes and knowledge; this is compared with any current or anticipated level of skills.

The difference between the level of skills possessed by employees and the anticipated level is known as knowledge gaps.

The gaps are then closed by recommending training on acquisition of new skills or improving existing skills

4 0
3 years ago
Why businesses and entrepreneurs are more likely to voluntarily undertake the projects that consumers value highly relative to p
olga nikolaevna [1]

Businesses and entrepreneurs are more willing to take up projects with high relative profit because they are looking for profits.

Explanation:

The government sponsored projects which are on offer do not generate as much revenue for a firm that they can earn for a similar project in which the per unit cost of production will be covered better as the consumer will be paying them more.

In government funded projects, they will not receive enough benefits from the government to cover their costs and justify the price drop which comes with people expecting lower rates from products associated with the work of the government.

Thus is it viable to work on private projects more.

3 0
3 years ago
You purchase a 30-year, zero-coupon bond for a price of $25. The bond will pay back $100 after
Reil [10]

Answer:

annual compounded return = 4.73 %

so correct option is D) 4.73%

Explanation:

given data

present value = $25

future value = $100

time = 30 year

to find out

annual compounded return

solution

we get here annual compounded return that is express as

annual compounded return = (\frac{FV}{PR} )^{\frac{1}{t}} - 1    ............1

here t is time period and FV is future value and PV is present value

so put here all value in equation 1 we get

annual compounded return = (\frac{100}{25} )^{\frac{1}{30}} - 1

annual compounded return = 0.047294

annual compounded return = 4.73 %

so correct option is D) 4.73%

6 0
3 years ago
A company can sell any mix of Product A and Product B at full capacity. The company has 100,000 hours of capacity. The demand fo
Marta_Voda [28]

Answer:

Company A produce 100,000.

Explanation:

According to the question , the computation is shown below:-

Particulars                                     Product A      Product B

Contribution margin per unit         $20                 $30

Hours per unit                                1                       2

Contribution margin per unit         20                    15

As we can see that the company A produces 100,000 and the same is the answer

8 0
3 years ago
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