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tangare [24]
3 years ago
15

Jerry Rice and Grain Stores has $4,430,000 in yearly sales. The firm earns 2 percent on each dollar of sales and turns over its

assets 4.5 times per year. It has $167,000 in current liabilities and $342,000 in long-term liabilities.
a. What is its return on stockholders’ equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 4.75, what will be the new return on stockholders’ equity? Assume that the profit margin stays the same as do current and long-term liabilities. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
olganol [36]3 years ago
3 0

Answer:

a. 5.37%

b. 5.08%

Explanation:

Firstly, we need to calculate net profit before return on stockholder's equity

Sales. $4,430,000

Net income % on sales 2%

Net income. $88,600

We will also calculate total stockholder's equity

Sales. $4,430,000

Asset turnover ratio. 4.5

Total assets. $984,444

Less: current liab. ($167,000)

Less: long term liab. ($342,000)

Total stockholder's. $475,444

equity

a. Return on stockholder's equity

= Total stockholder's equity ÷ Net income

= $475,444 ÷ $88,600

= 5.37%

b. New return on stockholder's equity

Total assets $984,444

× Asset turnover ratio. 4.75

New total sales. $4,676,109

Net income % sales. 2%

Net income $93,522

Recall that total stockholder's equity = $475,444

Net income = $93,522

Therefore, New return on stockholder's

equity = Total stockholder's equity / Net income

= $475,444 ÷ $93,522

= 5.08%

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Norma-Jean [14]

Answer:

C) ​The chronological context

Explanation:

Chronological context refers to time related factors that affects affects communication. The effect could be favourable or unfavourable.

In this scenario because Andy had worked for a long time and he feels he is hard working, he feels he deserves a pay raise.

His need for a pay raise is time based. It is initiated by his length of service in the company. So this is a chronological context in which a time based factor affects communication between Andy and Anna.

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3 years ago
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Which option best describes a trustworthy person? A. a dependable person B. an honest person C. a person who has never harmed ot
gladu [14]

Answer:

A.

Explanation:

A trustworthy person is one who can be relied on and be trusted by other people in many things such as keeping secret, helping people, etc. This requires many characteristics such as honesty, positiveness or being considerate, kind and compassionate.

Although honesty is one characteristic needed to be a trustworthy person, this is not enough for being considered trustworthy, so that B is eliminated.

Similarly, a person who has never harmed others is the kind one. This answer is also not enough to describe a trustworthy person.

The last answer has totally different meaning from a trustworthy person. Sharing values just help make people in a relationship understand each other, does not mean reliable.

3 0
3 years ago
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You need a 30-year, fixed-rate mortgage to buy a new home for $250,000. Your mortgage bank will lend you the money at an APR of
cricket20 [7]

Answer: $463,067.50

Explanation:

Calculation of single bill payment i.e. Future value

Future\ value=Present\ value\times(1+r)^{n}-Payment\times\frac{(1+r)^{n}-1 }{r}

Future\ value=250,000\times(1+\frac{5.45}{1200} )^{360}-900\times\frac{(1+\frac{5.45}{1200} )^{360}-1 }{\frac{5.45}{1,200} }

                            = $250,000 × 5.110505847 - $900 × 905.06551

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Therefore, the single balloon payment will be $463,067.50

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3 years ago
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares s
Studentka2010 [4]

Answer:

22.38%

Explanation:

Raven corporation has just gone public

They received $15.90 for each 25 million shares that was sold

The first step is to calculate the net amount raised

Net amount that was raised= 15.90×25,000,000 = 397,500,000

397,500,000-860,000-330,000

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Indirect flotation cost= indirect cost+price appreciation

= 330,000+(19.40-17.50)×25,000,000

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Therefore, the flotation cost as a percentage of funds raised can be calculated as follows

= 88,690,000/396,310,000 × 100

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= 22.38%

Hence the flotation costs as a percentage of funds raised is 22.38%

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Masja [62]

Answer:

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Explanation:

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