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Divisional structures arrange people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions.
A; sounds like the best option
Answer:
It would decrease
Explanation:
Return on equity is an example of a profitability ratio.
Profitability ratios measure the ability of a firm to generate profits from its asset
Using the Dupont formula, ROE can be determined using:
ROE = Net profit margin x asset turnover x financial leverage
ROE = (Net income / Sales) x (Sales/Total Assets) x (total asset / common equity)
If profit margin reduces and asset turnover and leverage remains the same, ROE would decrease
Answer:
A. $5.17
Explanation:
Use the following formula to calculate the Earnings per share
Earnings per share = ( Net Income - preferred Dividend ) / Weighted average numbers of outstanding shares
Where
Net Income = $370,000
Preferred Dividend = 10,000 x $100 x 6% = $60,000
Weighted average numbers of outstanding shares = 54,000 shares + ( 18,000 shares x 4/12 ) = 54,000 shares + 6,000 shares = 60,000 shares
Placing values in the formula
Earnings per share = ( $370,000 - $60,000 ) / 60,000 shares
Earnings per share = $5.17 per share
