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Rzqust [24]
2 years ago
12

Which financial leverage ratio is used with two other ratios to mathematically produce the return on equity ratio?

Business
1 answer:
ipn [44]2 years ago
5 0

Answer: c. Total Assets/ Equity

Explanation:

To measure the Return on Equity with 3 ratios, the <em>DuPont Analysis</em> can be used. This is a technique of deconstructing the Return on Equity ratio into various constituent ratios so that their effect on Return on Equity is better know.

The basic DuPont Analysis is;

Return on Equity = \frac{Net Income}{Revenue} * \frac{Sales}{Total Assets}  * \frac{Total Assets}{Equity}

Total Assets/ Equity or the Assets to Shareholder Equity ratio is the answer.

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Crank

Answer:

Economic loss=$(28,000)

Explanation

Accounting profit is the difference between total revenue and explicit cost.

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Economic profit = sales revenue - explicit cost - implicit cost

Implicit cost is the opportunity cost - the value of the next best alternative sacrificed to produce the product.

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3 years ago
If the Fed carries out an open market operation and buys U.S. government​ securities, the federal funds rate​ ________ and the q
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Answer:

decreases,  increases

Explanation:

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thats

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