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alina1380 [7]
3 years ago
9

This year Baldwin achieved an ROE of 5.9%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) n

ext year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Baldwin's ROE
Business
1 answer:
Rufina [12.5K]3 years ago
8 0

Answer:

ROE will increase

Explanation:

This action will cause an increase in Baldwin's ROE

ROE is the same as return on Equity. The return on equity is equal to the net profit margin multiplied by asset turnover which is also multiplied by equity multiplier.

From the above, if asset turnover is being increased by measures taken by the management, the ROE will also have to increase too. Firms will have to be generating more sales per units of the assets that they own.

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In market economy a high price is a signal for Group of answer choicesproducers to supply less and consumers to buy more produce
juin [17]

Answer:

producers to supply more and consumers to buy less

Explanation:

In market economy a high price is a signal for consumers producers to supply more and consumers to buy less .

<u>Since a market economy allows the free interplay of supply and demand, it ensures that the most desired goods and services are produced. </u>

<u>Since the market allows the free interplay of supply and demand, then the law of demand holds that </u>'consumers are willing to buy more at a lower price and suppliers are willing to supply more at a higher price.

5 0
2 years ago
Osawa, Inc., planned and actually manufactured 260,000 units of its single product in2017 , its first year of operation. Variabl
AVprozaik [17]

Answer:

(a) $ 530,000

Explanation:

total production 260,000 units

variable manufacturing $26 per unit = $6,760,000

variable S&A $11 per unit

planned and actual fixed manufacturing $520,000

planned and actual fixed S&A $370,000

total costs during the year = $10,510,000

units sold 180,000 x $44 = $7,920,000

cost of goods sold per unit = ($26 x 180,000) + (180,000 x $520,000/260,000) = $4,680,000 + $360,000 = $5,040,000

total operating expenses = ($11 x 180,000) + $370,000 = $1,980,000 + $370,000 = $2,350,000

net income = $7,920,000 - $5,040,000 - $2,350,000 = $530,000

7 0
3 years ago
In addition to the following closing costs listed below, the buyer pays a realtor commission that is 3.5% of the loan amount. Cl
kobusy [5.1K]

Answer:

d.

$8,097

Explanation:

8 0
3 years ago
Adriana is not keen on collecting facts and information while solving problems. she is spontaneous in decision making and usuall
V125BC [204]
Her decision is known as a "satisfice" decision
4 0
3 years ago
Jean says to Joan, "If you'll promise to feed my dog each day while I am out of town next week, I'll pay you $100." Joan replies
blsea [12.9K]

Answer:

When Joan said that she would feed Jean's dog

Explanation:

A verbal contract comes into existence when there is a proposal and the person who receives the offer accepts the conditions. When the offeror and the offeree comes into a verbal agreement (terms and conditions) the speaking acceptance becomes the contract into reality.

3 0
3 years ago
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