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IceJOKER [234]
3 years ago
8

Firm A and Firm B have the same total assets, ROA and profit margin. However, Frim B has a higher debt ratio and interest expens

e then Firm A. Which of the following statements is correct? A.) Firm B must have a higher ROE than first A. B.) Firm B must have a higher capital intensity ratio then Firm A. C.) Firm B must have a higher fixed asset turnover than Firm A. D.) Firm B must have a lower ACP than Firm A.
Business
1 answer:
SashulF [63]3 years ago
6 0

Answer:

A.) Firm B must have a higher ROE than first A.

Explanation:

Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.

Interest expense is the amount that is paid to service a loan.

This implies that company B has higher loan portfolio than Company A.

Considering the accounting formula

Equity= Asset- Debt

So an increase in debt will result in a decrease in equity.

Return on equity= Net income/Equity

It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.

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Account A pays simple interest.
maw [93]

Answer:

Explanation:

                          Interest Factors

<u>Periods          6%       7%          8%                  9%            10%             11 %</u>

1                 1.0600      1.0700     1.0800        1.0900     1.1000        1.1100

2                1.1236      1.1449         1.1664         1.1881      1.2100        1.2321

3                1.1910       1.2250      1.2597         1.2950     1.3310         1.3676

4                1.2625      1.3108     1.3605          1.4116       1.4641          1.5181

1)

Future value paying simple interest = Principal + [( principal * interest) * investment period]

Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]

Future value paying simple interest = $2,000 + 540

Future value paying simple interest = $2,540

2)

Future value paying compound interest = Present value * ( 1 + interest)n

Future value paying compound interest = $2,000 * ( 1 + 0.09)3

Future value paying compound interest = $2,000 * 1.295029

Future value paying compound interest = $2,590.058

3)

Difference = $2,590.058 - 2,540

Difference = $50.058

3 0
3 years ago
Please explain to me CPJ and CRJ immediately I really need in depth explanation​
alukav5142 [94]

Answer:

CRJ means cash receipt journal. ... In higher classes, this journal is not made, it is included in the debit side of cash book. Meaning of CPJ. CPJ means cash payment journal.

8 0
3 years ago
Which examples demonstrate common Financial and Investment Planning workplaces and employers? Check all
jenyasd209 [6]

Answer:

The correct answers are,

  • -Carmen Works in an investment companies office analyzing the level of risk that different Investments offer
  • -Luisa works at a stock exchange buying and selling securities for customers
  • -Ladonna is self-employed and meets with customer dinner office to provide Financial advice ​

Explanation:

financial advisory is an important aspect in the business world and is important for the companies and start ups to smartly and effectively utilize their finances.

most of the time, those who are in the profession of "financial advisory" are carefully monitored by regulatory bodies such as the securities and exchange commissions and related professional body.

in this scenario, investment officers and stock brokers are shown, all fall under the category of advisers.

3 0
3 years ago
Linda and her mom want to start a company selling homemade brownies to large supermarket chains. To get started, they have creat
kirill [66]

Answer:

server

Explanation:

According to my research on information technology and business structures, I can say that based on the information provided within the question in this situation they do not need a server for their business. A server is a separate computer hardware that manages a database and allows easy access to the data. Most business need one especially when running a website but since Linda and her mom are working from their basement and are okay with their computers then they will not need a server.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
The emphasis on keeping customers for long periods of time is the central focus of ______ value and the reason firms focus on cu
Archy [21]

Answer:

Customer Lifetime Value

Explanation:

Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.

It is a predictor of how well you are doing to retain your existing customers.

Why is it important?

suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.

12*5*15= 900$

Subtract the advertising cost

900-10=890$ This is your customer lifetime value

Now imagine what would have happen if we had to sell these belts to 75 different customers?

The advertising cost to attract 75 customers would have been too much and hence net profit and customer lifetime value would be very less.

75*10=750$

900-750=150$

This is why customer lifetime value is important and businesses focus on retaining their customers for longer periods.

3 0
3 years ago
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