The return on equity(ROE) is 0.1
The parameters given in the question are
Net income= $5 million
Shareholder's equity= $50 million
The formular for return on equity is
The return on equity can be described as the ratio of the net income an shareholder's equity
The formula for ROE can be written as follows;
= Net income/Shareholder's equity
= 5 million/50 million
= 0.1
Hence the return on equity(ROE) is 0.1
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<h2>
Answer:</h2>
x = (log₅7) - 8
<h2>
Explanation:</h2>
<em>Given;</em>
= 7
<em>Take log of both sides;</em>
log₁₀() = log₁₀7 -------------(ii)
<em>From the laws of logarithm remember that;</em>
logₐ xⁿ = n logₐ x
<em>Equation (ii) can then be written as;</em>
(x + 8)log₁₀5 = log₁₀7
<em>Divide both sides by log₁₀5</em>
(x + 8) = -----------(iii)
<em>From the laws of logarithm, remember that;</em>
<em>Equation (iii) can thus be written as;</em>
(x + 8) = log₅7
x + 8 = log₅7
<em>Make x subject of the formula;</em>
x = (log₅7) - 8
Paulie's opportunity cost of producing one cup of ice cream is 8.5 t-shirts.
<h3>What is the opportunity cost?</h3>
The potential benefits that a person, investor, or business forgo while choosing between two possibilities are known as opportunity costs. Opportunity costs can be easily disregarded since they are by nature invisible. Understanding the potential opportunities missed when a business or individual chooses one investment over another is necessary for making wiser decisions.
To accurately calculate opportunity costs, it is necessary to balance the benefits and drawbacks of each option.
Opportunity costs have a value that can assist individuals and organizations in making more profitable choices.
Here, the opportunity cost for Paulie for ice cream will be calculated by dividing 17 by 2 Thi will be:
= 17 / 2
= 8.5 t-shirts
Therefore Paulie's opportunity cost of producing one cup of ice cream is 8.5 t-shirts
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Answer:
CD $ 70,000
Mutual fund $ 10,000
maximum return $ 6,200
Explanation:
we want to maximize return considering the following restrain
mutual fund > 10,000
certificate of deposit = > 2mutual fund
CD + Mutual Fund = 80,000
as the certificate yield is higher than mutual we will invest the minimum in mutual and the rest in the CD which will fullfil the requirement of at least twice as much invested in CD.
return = CD x 0.08 + mutual x 0.06
return = (80,000 - 10,000) x 0.08 + 10,000 x 0.06
return = 5,600 + 600 = 6,200