Answer:
By changing the capital structure, ROE will improve by 3%. (Keeping all other things constant).
Explanation:
Return on Equity can be calculated as Net Income / Total Equity.
It is given that the liability-to-asset ratio is 40%. It means that the remaining 60% of the assets are financed through Equity. The worth of assets is $250. When we multiply it with the weightage of Equity, we will get $150. The figure for Net Income is given, simply put the values in ROE formula and you will get 13% (20/150).
Now to check the impact on ROE by changing capital structure, you have to change the denominator figure. To calculate it, multiply $250 which is the worth of assets with the new weightage of Equity which is 50%. The new Equity is 125. Since the denominator value has decreased from 150 to 125, the financial metric ROE will improve by 3%.
I hope I made it very much clear. If you have any further queries, feel free to ask. Thanks!
Answer:
C. ""NSF"" checks
Explanation:
Reconciling items are either transactions that have been recorded by the bank but yet to be recorded in the books or transactions recorded in the books but yet to be recognized in the bank statement. As such, to reconcile the bank and book balances, these items are either recognized or derecognized in the books.
Deposits in transit would be subtracted from the books to get the bank balance.
Bank service charge would also be deducted from the books to get the bank balance.
NSF"" checks would be added as it would have been initially deducted from the books but the banks would have refused such check on the basis of insufficient funds.
Collection of a note by bank will be added to the book balance
I would say the aging "baby boomers" will not consume much milk as that is more common for babies and young children to consume it so therefore I think that the overall demand will decrease so milk sales will decrease significantly.
Answer:
common equity and preferred equity
Explanation:
It is important to remember that, each source of finance carry its own benefits and risk for companies
The two principal sources of financing for corporations are common equity and preferred equity.
This is so because, with Common Equity, the Company can raise more capital through the public and with Preferred Equity the company reduces its financial risk since most dividends using this instrument can be adjusted or deferred unlike using debt instruments which carry a significant financial risk.