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Strike441 [17]
3 years ago
11

The Carla Vista Timber Company has the following ratios: Net sales/Total assets = 3.00; ROA = 9.30%; ROE = 16.1%. What are Carla

Vista’s profit margin and debt ratios? (Round answers to 2 decimal places, e.g. 12.55 or 12.55%.)
Business
2 answers:
Leni [432]3 years ago
6 0

Answer: profit margin ratio = 0.03 and dept ratio = 1.73

Explanation:

Net ratio/total assets means assets turnover which is equal to 3

ROA = profit margin × assets turnover

ROA = 9.3% = 0.093

ROA = profit margin × 3

Profit margin = 0.093/3

Profit margin = 0.031

Also,

ROE = ROA × dept - equity margin ratio

Dept-equity margin ratio means dept ratio.

Dept ratio = ROE/ROA

Dept ratio = 16.1/9.3 = 1.731

Sidana [21]3 years ago
6 0

Answer:

Profit margin = 3.10%   Debt Ratio = 0.42%

Explanation:

Gross profit margin represents the gross profits generated from every dollar in sales

Debt ratio measures the amount of debt a firm has used to finance it operations

First compute the equity multiplier

given by = ROE/ROA

              = 16.1%9.30%

               1.73

From the equity multiplier compute the debt ratio

DR = 1- 1/Equity multiplier

     =1-1/1.69

      =0.42

from the information given the ROE formula according to du point analysis can be used

ROE = Profit margin × asset turnover × equity multiplier

16.1 =Profit Margin ×3 × 1.73

Profit margin = 16.1/3*1.73

                      =3.10%

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ankoles [38]

Answer:

The correct option is is A, predatory pricing

Explanation:

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5 0
3 years ago
The buyer notifies the seller in writing of a termination of the contract under the Loan Objection Deadline. What happens to the
-BARSIC- [3]

Answer:

The earnest money must be returned to the buyer.

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The loan objection deadline sets a specific by which the buyer must present a written notification to the seller stating that he/she will not be able to purchase the property due to problems related to obtaining a mortgage loan (or really any other reason, since only the buyer knows about his/her loan status). After this date, if the buyer cannot secure the mortgage loan and finish the purchase, the earnest money will be lost and must be given to the seller.

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3 years ago
The multiplier for a futures contract on a stock market index is $50. The maturity of the contract is 1 year, the current level
jolli1 [7]

Answer:

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The current index value after 12 months = current stock index * (1 + risk free - dividend yield)^12

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5 0
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