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4 years ago

An increase in financial leverage generally results in a higher return on equity (ROE)

Business

1 answer:

ollegr [7]4 years ago

5 0

Answer:

The statement is: True.

Explanation:

According to the DuPont analysis, three factors are influencing the increase of the Return On Equity (ROE): the efficiency of operations, the efficiency of the company's assets, and the financial leverage. The DuPont analysis studies those three factors and how they help the ROE to increase or decrease.

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1.2.35 Question Help Ralph Chase plans to sell a piece of property for $ 140000 140000. He wants the money to be paid off in tw

VARVARA [1.3K]

Answer:

a). The amount of the short-term loan=$128,181.82

b). The amount of the long-term loan=$156,666.67

Explanation:

The total annual interest to be paid can be expressed as;

I=PRT

where;

I=annual interest

P=principal amount of the note

T=number of years

a). For the short-term note's case;

I=$14,100

P=unknown

R=11%

T=1 year

replacing;

14,100=P×(11/100)×1

0.11 P=14,100

P=14,100/0.11

P=128,181.82

The amount of the short-term loan=$128,181.82

b). For the long-term note's case;

I=$14,100

P=unknown

R=9%

T=1 year

replacing;

14,100=P×(9/100)×1

14,100=P×0.09

0.09 P=14,100

P=14,100/0.09

P=156,666.67

The amount of the long-term note=$156,666.67

3 0

3 years ago

The opportunity cost of tesla's investment in a new battery factory in nevada is

Alex787 [66]

I believe the answer is: D. what the company considered to be the best-foregone option to the factory.
The creation of new type of battery would cost Tesla a huge amount of capital that would definitely impact the amount of their profit for several operating years. The difference in profit between prior and after new battery would be the opportunity cost that must be taken by Tesla.

5 0

3 years ago

During the current month, Wacholz Company incurs the following manufacturing costs. (a) Purchased raw materials of $17,500 on ac

scoundrel [369]

Answer and Explanation:

The journal entries are shown below:

a. Raw material inventory $17,500

To Account payable $17,500

(Being raw material inventory purchased on account)

b. Factory labor $39,900

To Factory wages payable $30,800

To Employer payroll tax payable $9,100

(Being factory labor is recorded)

c. Factory Overhead $16,170

To Factory Utilities payable $3,500

To Prepaid Factory property taxes $2,770

To Accumulated Depreciation $9,900

(Being Manufacturing costs is recorded)

6 0

3 years ago

In recent years, wireless cellular telephones have been replacing land-line phone service. this is an example of

slavikrds [6]

This is an example of decline.
It has gone from being in maturity to being in decline.

8 0

3 years ago

"What type of research design should a marketing researcher use to find out how many customers there are, what brands they buy a

Taya2010 [7]

Answer:

Descriptive Research.

Explanation:

Descriptive marketing research aims to observe and discover some market phenomena, so that it is possible to describe, classify and interpret such phenomena, such as what is happening in the market, specifying who, what, where and how.

It is usually carried out through discussions, questionnaires, interviews and specific groups. It serves as a basis for explaining the occurrence of such phenomena encountered.

7 0

3 years ago