Answer:
36%
Explanation:
For the computation of the company's return on equity first we need to follow some steps which is shown below:-
Step 1
Earnings before tax = EBIT - Interest
= $452,000 - $152,000
= $300,000
Step 2
Earnings after interest and taxes = Earnings before tax - Tax
= $300,000 - ($300,000 × 40%)
= $300,000 - $120,000
= $180,000
Step 3
Asset turnover ratio = Total revenue ÷ Total assets
3.6 = $4,000,000 ÷ Total assets
Total assets = $1,111,111.11
Step 4
Equity ratio = 1 - Debt ratio
= 1 - 0.55
= 0.45
Step 5
Total Equity = Equity ratio × Total assets
= 0.45 × $1,111,111.11
= $500,000
and finally
Return on Equity = Net income ÷ Equity
= $180,000 ÷ $500,000
= 0.36
or
= 36%
Answer:
d. you have the opportunity to make more money when you invest compared to what you can earn putting your money in a savings account
Answer:
D) All of the above
Explanation:
A buydown can be defined as an act of paying a specified amount of money to a lender in exchange for a lower interest rate, in order to reduce the amount to be paid periodically such as for a home-buyer.
The common purposes of a "buydown" of an interest rate would be to:
1. To help a buyer to afford a more expensive home.
2. To help a buyer qualify for a home more easily.
3. To help the seller make their home more attractive to a prospective buyer.
Answer:
(1) (i) Material A required = 216,000
(ii) Material B required = 36,000
(2) (i) $1,080,000
(ii) $648,000
Explanation:
(a) Production units = Sales + Closing Stock – Opening Stock
= 75,000 + 9,000 – 12,000
= 72,000 units
Material A required = Production units × Direct Material
= 72,000 × 3
= 216,000
Material B required = Production units × Direct Material
= 72,000 × 0.50
= 36,000
(b) Material A cost = Material A required × Cost per lb
= 216,000 × $5
= $1,080,000
Material B cost = Material A required × Cost per lb
= 36,000 × 18
= $648,000
