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3 years ago

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

Business

1 answer:

ipn [44]3 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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Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including exp

Anika [276]

Answer:

Operating activities

Explanation:

The operating activities deal with the purchase and sale of merchandise to the customers plus it also involves the expenditure incurred for day to day operations like - wages and salaries expenses, administrative expenses, selling and other general expenses

By performing day to day activities, the company is enabled to generate the revenues through which the company could accomplish its goals and objectives.

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3 years ago

Orlando has a bank statement balance of $414.25 and $5.90 service charge. His check register shows $374.16 and he has two outsta

laiz [17]

Answer:

$365.93

Explanation:

The computation of the checkbook balance is shown below:

= Balance of bank statement - first outstanding check amount - second outstanding check amount

= $414.25 - $26.54 - $21.78

= $365.93

In order to determine the check book balance, we deducted the two outstanding checks from the bank statement balance

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3 years ago

7. All of which are types of organizational chart except? 0 Line organizational chart Staff organizational chart O Students orga

Irina18 [472]

Answer:

WILL YOU PAY ME IF I TELL YOU THE ANSWER

Explanation:

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3 years ago

Which of the following best explains why the media industry is characterized

Gwar [14]

Answer:

The answer is C. Government licensing allows media companies to have a near monopoly.

Explanation:

Not anyone can start a media company just because they want to. There are barriers to entry such as the large capital expenditure, staffing, and the government licensing.

Among these, the major contributor towards the marketto become an oligopoly is the government licensing process.

There are many things to consider and do during the licensing process and it is highly time consuming as well. Moreover, the costs involved is significantly high as well.

7 0

3 years ago

Read 2 more answers

A change in the asset turnover ratio from 1.3 to 1.6 would indicate a. a decrease in the effectiveness of assets in producing sa

Zarrin [17]

Answer:

a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.

Explanation:

Assets turnover ratio = $\frac{Net Sales}{Average assets}$

Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.

Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.

7 0

3 years ago