1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mafiozo [28]
3 years ago
8

Last year, DJ's Soda Fountains, Inc. reported an ROE = 27 percent. The firm's debt ratio was 50 percent, sales were $9 million,

and the capital intensity ratio was 1.5 times. What is the net income for DJ's last year? Multiple Choice a. $1.22m b. $1.82m c. $2.43m d. $2.84m
Business
1 answer:
notsponge [240]3 years ago
7 0

Answer:

b. $1.82m

Explanation:

Capital Intensity ratio = Total aasets / sales

1.5 = Total Assets / 9m

Total Assets = 9m x 1.5 = 13.5

ROE = Total Income / Shareholders equity

27% = Total Income / (13.5 x 50%)

27% = Total Income / 6.75

Total Income = 27% x 6.75

Total Income = 1.8225

Total Income = 1.82 (Rounded)

The correct option is b. $1.82m.

You might be interested in
Eneral Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company'
ololo11 [35]

Answer: The correct answer is "e. Export strategy".

Explanation: and. Export strategy is the global corporate strategy that best describes General products inc. because In spite of being in the United States and that the majority of its income comes from there, it does not stop focusing the business in Canada, because 10% of the income comes from exports to Canada.

4 0
3 years ago
What should a consumer consider when deciding whether to purchase health insurance?
sashaice [31]
C. Whether the deductible is higher compared to other policies. Sorry if I am wrong but this is my best answer.
7 0
2 years ago
Read 2 more answers
Development of financial institutions​
Lapatulllka [165]

a Development Financial institution (DFi) is defined as “an institution endorsed or supported by Government of india primarily to provide devel- opment/Project finance to one or more sectors or sub-sectors of the econ- omy. ... these DFis are also known as Development banks.

6 0
2 years ago
Serendipity Inc. is re-evaluating its debt level. Its current capital structure consists of 80% debt and 20% common equity, its
Dmitriy789 [7]

Answer:

8.76%

Explanation:

Using the CAPM formula:

Ke = Rf + Beta Factor * Risk premium

Here

Rf is 5%,

Beta Factor is 1.6

And

Risk Premium is 6%

By putting values, we have:

Ke = 5% + 1.6 * 6%

Ke = 14.6%

Now we will find new firm's cost of equity under 40% debt by simply multiplying it with the equity percentage:

Weighted Cost of Equity = 14.6% * 60% = 8.76%

8 0
3 years ago
Which of the following is not a step in creating a debt payment plan? a. Rank all debts in the order in which you would like to
7nadin3 [17]

Answer:

b. Consolidate all credit cards onto a single card with a single interest rate.

Explanation:

When a debt payment plan is initiated then, it is decided according to the outstanding amounts, that which shall be paid first and the order of payment for remaining debts.

For this monthly income and expenses are to be evaluated, in order to decide how much payment shall be made accordingly, in each month.

But this entire process do not involve the step of aggregating all the cards so that there is only one card with the same payment. There is no relation to any such payment.

7 0
3 years ago
Other questions:
  • Work should be performed by an individual if ________.A) the work is complex and requires different perspectivesB) the work crea
    13·1 answer
  • Sheridan's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's
    13·1 answer
  • Wendy is a self employed certified financial planner and began his business in 2018. During 2018, she purchased a $500 computer
    7·1 answer
  • A single person making $20,000 would pay ________ per cent on $7,550 and 15% on the remainder..
    13·1 answer
  • Which of the following is not an example of a primary fieldwork position?
    5·2 answers
  • How many total student loan borrowers owe more than $100,000?
    6·1 answer
  • All of the following are ways the WBS helps in managing projects EXCEPT Select one:
    14·1 answer
  • Prepare the schedule of cost of goods manufactured for Barton Company using the following information.
    15·1 answer
  • A manufacturing company had been under pressure to increase profits, so it
    7·2 answers
  • Management generally resists allowing employees to manage their own workflow because it decreases their motiviation. please sele
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!