Answer:
Money owing to bank, Motor Van, Stock of goods
Explanation:
Answer:
Your friend says that Company A is doing a great job for shareholders. He says that their ROA is high. You point out that shareholders tend to like debt and the Company A has low debt. Furthermore, ROA is biased towards companies with low debt. You suggest that __ROE______ is a better measure of the job management is doing for shareholders.
Explanation:
Company A's Return on Equity (ROE) is a financial measure that investors use to gauge how their equity investments in the company are generating income. The Return on Assets (ROA) helps the same investors to measure how management is using Company A's assets or resources to generate more income. Company A's ROE is determined by dividing its net income by the equity, while its ROA is determined by dividing its net income by the assets. If the ROE equals the ROA, it shows that there is no leverage (debts) held by Company A.
Answer:
Jury of Executive Opinion
Explanation:
Jury of Executive Opinion method of sales forecasting employs the views of to management in various section. They are are experienced and have good knowledge of the market factors and are able to predict the expected sales. They are able to forecast sales figures through estimates and previous experiences. All internal and external factors are taken into account. Their judgements are pooled together and averaged in drawing the sales forecast of Kryptos Inc.
The cost of equity from retained earnings when using the CAPM approach for Scanlon Inc., would be 7 . 80%
<h3>How to find the cost of equity ?</h3>
The CAPM method stands for the Capital Asset Pricing Method and it allows for the cost of equity to be calculated by using the beta, the real risk free rate, and the market risk premum.
The cost of equity when using the CAPM method can be found by the formula:
Cost of equity = Real risk free rate + Beta x Market premium
The real risk free rate = 4 . 10 %
Beta = 0 . 70
Market risk premium = 5 . 25 %
The cost of equity is therefore:
Cost of equity = 4 . 10 % + 0 . 70 x 5 . 25 %
Cost of equity = 4 . 10 % + 3.675 %
Cost of equity = 7. 775 %
Cost of equity = 7 . 80%
Find out more on the CAPM method at brainly.com/question/24158909
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