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bezimeni [28]
3 years ago
9

If Roten Rooters, Inc., has an equity multiplier of 1.52, total asset turnover of 1.20, and a profit margin of 6.2 percent, what

is its ROE
Business
2 answers:
Katarina [22]3 years ago
7 0

Answer:

11.30%

Explanation:

Roten rooters have an equity multiplier of 1.52

The total assets turnover is 1.20

The profit margin is 6.2%

= 6.2/100

= 0.062

Therefore the ROE can be calculated as follows

= 0.062× 1.52×1.20

= 0.1130×100

= 11.30%

Hence the ROE is 11.30%

Mkey [24]3 years ago
4 0

Answer:

The answer is 11.31 percent

Explanation:

ROE means Return on Equity. It is a Profitability ratio.

The most common formula for Return on Equity (ROE) is:

Net income / equity.

To calculate the Return on Equity (ROE) for this question, we use dupont formula:

Equity multiplier x total asset turnover x profit margin

= 1.52 x 1.2 x 0.062

0.1131

Expressed as a percentage is:

11.31 percent

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The selling price of the price that is offered to the buyer of the goods. The selling price of the car should be $<u><em>75,000</em></u>.

<h3>What is the selling price?</h3>

The selling price is the ultimate value of the goods the seller is willing to offer to the buyer at the time of sale. It is determined by adding up the profit margin to the actual cost of the goods.

The computation of the selling price of the car:

Given,

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\begin{aligned}\text{Selling Price}&=\text{Cost Price}+\text{Margin}\\&=\$60,000+(\$60,000\times25\%)\\&=\$60,000+\$15,000\\&=\$75,000\end{aligned}

Therefore, if Sherry wants to make 25% on the sale of each car then the car must be sold at $75,000 each.

Learn more about selling price, here:

brainly.com/question/3798799

5 0
2 years ago
In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most r
Burka [1]

Answer:

Ranking projects from least risky to most risky:

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Explanation:

As can be seen from the above scenario, the risk profile increases as the company's activities move away from the known, controllable, and internal arenas to the unknown, uncontrollable, and external arenas.  This implies that increasing uncertainty induces more risk.

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Chloe makes $500 per week and spends all her income on books and tea. Books cost $25 each, and Chloe buys 16 each week. Tea cost
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Answer:

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3 years ago
U.S. Craft Beer Bolsters U.K. Hop Production btle taste of UK. hop varieties U.K. hop farmers stepped up production in response
Nadusha1986 [10]

Answer:

The correct answer is letter "A": supply and an increase in the quantity demanded.

Explanation:

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8 0
3 years ago
n December ​, General Electric​ (GE) had a book value of equity of ​billion, billion shares​ outstanding, and a market price of
Gennadij [26K]

Answer:

a. GE's market capitalization = 276.60 billion; and GE's market-to-book ratio = 2.85.

b. GE's book debt-equity ratio = 2.08; and GE's market debt-equity ratio = 0.73

c. GE's enterprise value = $374.26 billion

Explanation:

Note: This question is not complete as all its data are omitted. The complete question is therefore provided before answering the question as follows:

In December 2015, General Electric (GE) had a book value of equity of $97.1 billion, 9.2 billion shares outstanding, and a market price of $30.06 per share. GE also had cash of $103.9 billion, and total debt of $201.7 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value?

The explanation to the answer is now provided as follows:

a. What was​ GE's market​ capitalization? What was​ GE's market-to-book​ ratio?

Calculation of GE's market​ capitalization

Market​ capitalization = Number of shares outstanding * market price per share = 9.2 billion * $30.06 = 276.60 billion

Calculation of GE's market-to-book​ ratio

Market-to-book​ ratio = Market capitalization / Book value of equity = $276.552 billion / $97.1 billion = 2.85

b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio?

Calculation of GE's book debt-equity ratio?

Book debt-equity ratio = Total debt / Book value of equity = $201.7 billion / $97.1 billion = 2.08

Calculation of GE's market debt-equity ratio

Market debt equity ratio = Total debt / Market​ capitalization = $201.7 billion / $276.46 billion = 0.73

c. What was GE's enterprise value?

Enterprise value = Market capitalization + Total debt - cash = $276.46 billion + $201.7 billion - $103.9 billion = $374.26 billion

5 0
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