<u>Calculation of Return on Equity:</u>
Return on Equity can be calculated using the following formula:
Return on Equity = Net Income / Equity
We can calculate net income using the following formula:
Net Income = Sales * Profit Margin = 3650*5% = $182.50
And we can calculate Equity using the following formula:
Equity = Total Assets * (1-Total Debt ratio) = 3350*(1-41%) = $1976.50
Now Finally,
Return on Equity = Net Income / Equity = 182.50 / 1976.50 = 9.23%
Hence the return on equity is <u>9.23%</u>
Answer:
The correct answer is: Proportion of any change in income that is spent on consumption.
Explanation:
In economics, this term is used to refer to the measurement made in order to determine consumption when the rent is increased by one unit. This measurement is nothing more than a mathematical relationship to calculate how people invest in consumption or save the income that is increased.
Answer:
Answer for below mentioned question "
You buy a put option to sell stock at $35. The price of the stock is $34 when you bought it, and the price paid for the put is $2. What is the percentage return from purchasing the put if at the expiration of the put the price of the stock is $31?"
is explained in the attachment.
Explanation:
Answer:
An excise subsidy has only a substitution effect since the subsidy artificially lowers the price of the subsidized good causing the consumer to increase consumption of the good, but no income effect.
Explanation:
The above is true due to the fact that the consumption of goods increases. This could have been reduced had it been that, there was never any excise subsidy on those goods.
