ROE = 15.40 is the right answer.
ROE = (profit margin x asset turnover x equity multiplier)
ROE = (7 x 1.63 x 1.35)
ROE = 15.40
<h3>What is Return on Equity?</h3>
The efficiency of a company's management team in managing the capital that shareholders have invested in it can be gauged by investors using the ratio known as return on equity (ROE). In other words, return on equity evaluates how profitable a company is in comparison to the equity held by stockholders. A company's management is more effective at generating revenue and growth from its equity financing the higher the ROE.
Using ROE, one may assess a business's position in relation to the market and its rivals.
The method is especially useful when comparing businesses in the same industry since it can be used to evaluate almost any company with a focus more on tangible than intangible assets and to identify which businesses are more financially efficient.
Shareholder equity divided by net income is referred to as the return on equity (ROE).
Before common-stock dividends are paid, the bottom line profit shown on an organization's income statement is known as net income. An alternative to net income is free cash flow (FCF), which is another measure of profitability.
Thus, ROE is a financial measuring tool for any business.
For more information on ROE, refer to the given link:
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Answer:
Option (A) is correct.
Explanation:
Given that,
After-tax IRR on total investment in the property = 9.0%
Before-tax IRR on equity invested = 17%
Before-tax IRR on total investment in the property = 12%
t: Marginal tax rate = 0.40
Break Even Interest rate (neither favorable nor unfavorable):
= After tax IRR on total investment ÷ (1 - Tax rate )
= 9% ÷ (1 - 0.40)
= 9% ÷ 0.60
= 15%
Answer:
17.60%
Explanation:
The total return , in this case, can be ascertained using the holding period formula provided below:
total return=(P1-P0+dividend+capital gains)/P0
Holding period return refers to the total return earned for holding the mutual fund investment for 1 year.
P1=market value of the fund now=$23
P0=the initial cost of the fund=$20
dividend=$0.22
capital gain= $0.30
total return=($23-$20+$0.22+$0.30)/$20
total return=$3.52
/$20
total return=17.60%
Answer:
labor force participation rate= 96.2%
Explanation:
Giving the following information:
Unemployed people= 19 million
Labor force= 500 million
<u>First, we need to calculate the employed people:</u>
<u></u>
Employed population = 500 - 19= 481 million
<u>Now, to calculate the labor force participation rate, we need to use the following formula:</u>
<u></u>
labor force participation rate= (employed people/labor force)*100
labor force participation rate= (481/500)*100
labor force participation rate= 96.2%
Answer:
Explanation:
hey there.here is your answer
The great economic problem is how to arrange our limited resources to satisfy as many of our wants as possible. Resources are not equally valuable in all uses, so we must choose where to allocate our resources in order to get the most value out of those resources
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