I think it's a "newly constructed home"
I hope it helped you!
Answer:
LeCompte Corp.
The profit margin that LeCompte Corp. would need in order to achieve the 15% ROE, holding everything else constant is:
A) 7.57%.
Explanation:
a) Data and Calculations:
Assets = $312,900
Common Equity = Assets = $312,900
Sales for the last year = $620,000
Net income after taxes = $24,655
Expected return on equity (ROE) = 15%
ROE (in amount) = $312,900 * 15% = $46,935
Profit margin = Returns on Equity/ Sales * 100
= $46,935/$620,000 * 100
= 7.57%
b) The expected returns on equity in dollars is equal to the net income. Therefore, we can use the ROE to calculate the profit margin. The profit margin expresses the relationship between sales and profit. It shows the profit made from each dollar sales.
Answer:
Correct answer is A, They know how to oversell their product so the customer can't say no. Explanation: Good salespeople are those who sell more and more of their company's product.
Answer:
After tax cost of debt = 10.43%
Explanation:
Market price = 960
Flotation cost = 0.07
Market price after Flotation cost = 960*(1-0.07) = 960*0.93 = 892.8
Face value = 1,000
Interest payment (PMT) = 1000*0.07 = 70
Term of payment = 12*2 = 24
Cost of debt before tax = Rate(24, 70, -892.8, 1000, 0)*2
Cost of debt before tax = 0.080198497*2
Cost of debt before tax = 0.160396994
Cost of debt before tax = 16.04%
Tax rate = 35%
After tax cost of debt = 16.04% * (1-35%)
After tax cost of debt = 0.1604*0.65
After tax cost of debt = 0.10426
After tax cost of debt = 10.43%
In here, we can say that we are looking for the nominal interest rate. Given is the real interest rate which is 5% and the inflation rate of 10%. The nominal rate of interest is real interest rate plus the inflation rate. Savers will now require an interest rate of 15%
