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love history [14]
3 years ago
11

On December​ 31, Mercury Corporation has the following data​available: Net Income ​$200,000 Interest expense ​20,000 Preferred d

ividends ​20,000 Total assets at the beginning of the year​850,000 Total assets at the end of the year ​780,000 Total common​stockholders' equity at the beginning of the year ​550,000 Total common​ stockholders' equity at the end of the year ​490,000 What is return on common​ equity?A 42.31%B 38.46%C 22.09%D 34.62%
Business
1 answer:
aliina [53]3 years ago
8 0

Answer:

D 34.62%

Explanation:

To get the return on commonequity we need to follow a few steps as follows:  

Here we have to let the Average total common stockholders' equity = ($550,000 + $490,000) ÷ 2 = $520,000 and (Net income $200,000 - Preferred Dividends $20,000) ÷ Average total common stockholders' equity = 34.62% .Therefore the correct answer is 34.62%.

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His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a
svet-max [94.6K]

Answer:

This implies that bus is an inferior good and car is a normal good.

Explanation:

Initially, Jim's income was $5000 a year.

As his income increases to $60,000 a year, he decides to buy a car instead of using the bus.  

In other words, with the increase in income, the demand for traveling by bus is declining.  

This implies that it is an inferior good.  

The demand for the car is increasing with an increase in income.  

So, the car is a normal good.  

An inferior good can be defined as a product that shows negative elasticity. This means with an increase in income its demand declines an vice versa.

A normal good can be defined as a product that shows positive income elasticity. That is, its demand increases with rise in income and vice versa.

4 0
3 years ago
MC algo 3-13 Equity Multuiplier Use the following information to answer this question Windswept, Inc. 2017 Income Statement ($ i
Helga [31]

Answer:

The answer is Option D. 1.68 times

Explanation:

The formula for equity multiplier is:

Equity Multiplier = Total assets ÷ Total stockholder's equity

In 2017:

Total stockholder's equity = Common stock + Retained earnings

Total stockholder's equity = $2890 + $700 = $3590

Total assets = $6,015

Now, putting these values in the above formula, we get,

Equity multiplier = $6,015 ÷ $3,590 = 1.68 times

5 0
3 years ago
How can a country gain from specialization and​ trade? A. A country can specialize in producing that for which it has an absolut
strojnjashka [21]

Answer:

C. A country can specialize in producing that for which it has a comparative advantage and then trade for other needed goods and services.

Explanation:

<em>Comparative advantage</em> is simply evaluating the opportunity cost of other benefits or costs, if the country is opting to choose for a specific category of goods for production purposes.

For example, let's say US can produce 20 Television (TV) sets and 50 Air Conditioners in a month. Here, the opportunity cost of producing 1 TV set is 50/20 i.e. 2.5 Air Conditioners. Similarly, the opportunity cost of producing 1 Air Conditioner (AC) is 20/50 i.e. 0.4 TV set. Hence, US should produce Air Conditioners over TV sets as per <em>Comparative Advantage</em> concept.

Take another example, let's say UK can produce 50 Television (TV) sets and 20 Air Conditioners in a month. Hence, the opportunity cost of producing 1 TV set is 20/50 i.e. 0.4 Air Conditioner. On the other hand, the opportunity cost of producing 1 AC is 50/20 i.e. 2.5 TV sets. Thus, UK should produce TV sets over AC's as per <em>Comparative Advantage </em>model.

Hence, US should export AC's to UK and import TV sets from UK to gain from specialization and trade.

<em> In this way nations can gain from specialization and trade by making use of Comparative Advantage theory</em>.

It is to be noted that <em>Absolute Advantage model </em>of Adam Smith is also good as it highlights production of that good by a country, which it can produce in large quantities with fewer resources and minimal time than any other nation in the world. But the <em>Comparative Advantage Model </em>developed by David Ricardo considers opportunity cost and is much more refined than Absolute Advantage Model.

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6 0
3 years ago
Read 2 more answers
On January 1, 1980 Moses deposit $1850 into a savings account paying 5.6% interest compounded quarterly if he hasn’t made any ad
artcher [175]

Answer: 12.86 years.

Explanation: Rule of 72 says that to know in how many years the amount can double can be done by using the interest rate. The rule of 72 says that 72 divided by the annual interest rate will give the number of years it will take to double the amount.

Rule of 72:

Rate of interest = 5.60%/4

Number of years to double the investment = 72 ÷ 1.4

Number of years to double the investment = 51.43/4 = 12.86 years

Therefore, it will take 12.86 years for the $1850 to get double to $3700.

4 0
3 years ago
Read 2 more answers
A chef who is responsible for preparation of salads, cold appetizers, and pâtés is called a
vampirchik [111]

Correct answer is C, Pantry Chef.

The area where salads, cold appetizers, pates, canapes, terrines, etc are made is called Pantry. And the person who is in charge of this area is called the Pantry Chef.

A pantry chef is responsible for the making of the above mentioned food in the pantry area.

3 0
3 years ago
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