1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
puteri [66]
3 years ago
10

Last year Randolph Company had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's

total-debt-to-total-assets ratio was 45.0%. What was total assets turnover, what was equity multiplier, what was profit margin, and what was the ROE?
Business
1 answer:
alexdok [17]3 years ago
7 0

Answer:

13.82%

Explanation:

Data provided in the question:

Sales = $325,000

Net income = $19,000

Assets = $250,000

Total-debt-to-total-assets ratio = 45.0% = 0.45

Now,

Total asset turnover = Sales ÷ Total assets

= $325,000 ÷ $250,000

= 1.3

Profit margin = Net income ÷ Sales

= $19,000 ÷ $325,000

= 0.05846

Equity multiplier = 1 ÷ [ 1 - Debt to asset ratio]

= 1 ÷ [ 1 - 0.45 ]

= 1.818

thus,

ROE = Profit margin × Total asset turnover × Equity multiplier

= 0.05846 × 1.3 × 1.818

= 0.1382

or

= 0.1382 × 100%

= 13.82%

You might be interested in
American express and discover card are examples of open loop systems. <br> a. True <br> b. False
PtichkaEL [24]
A. True
Btw that's a picture of me.

6 0
3 years ago
refers to the process of developing a working replica of the system or some aspect of the system. a. Use case modeling b. Protot
Bumek [7]

<u>b. Prototyping</u> refers to the process of developing a working replica of the system or some aspect of the system.

<u>Explanation</u>:

A prototype is a sample used by the system analysts or users to evaluate the new design or build to determine its precision. A prototype is a trial product or software that is widely used in software programming and electronics.

The accuracy of the newly developed product can be checked with the help of prototype. Prototype is the replica of the real product. It helps in correcting design error before its production. Consumer gets easily attracted by seeing the prototype before the release of the original product.

6 0
3 years ago
A firm currently has a debt-equity ratio of 1/2. The debt, which is virtually riskless, pays an interest rate of 6%. The expecte
Svetradugi [14.3K]

Answer:

Expected return on equity is 11.33%

Explanation:

Using Weighted Average Cost Capital without tax formula, overall rate of return is given by the formula:

WACC=(Ke*E/V)+(Kd*D/V)

Kd is the cost of debt at 6%

Ke is the cost of equity at 12%

D/E=1/2 which means debt is 1 and equity is 2

D/V=debt/debt+equity=1/1+2=1/3

E/V=equity/debt+equity=2/1+2=2/3

WACC=(12%*2/3)+(6%*1/3)

WACC=10%

If the firm reduces debt-equity ratio to 1/3,1 is for debt 3 is for equity

D/V=debt/debt+equity=1/1+3=1/4

E/V=equity/debt+equity=3/1+3=3/4

WACC=10%

10%=(Ke*3/4)+(6%*1/4)

10%=(Ke*3/4)+1.5%

10%-1.5%=Ke*3/4

8.5%=Ke*3/4

8.5%=3Ke/4

8.5%*4=3 Ke

34%=3 Ke

Ke=34%/3

Ke=11.33%

4 0
3 years ago
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives.
7nadin3 [17]

Please kindly note that none of the

Options given in the question is correct.

The correct answer is calculated and explained below

Answer:

$79.92 per move.

Explanation:

Activity rate can be calculated by dividing Activity cost budgeted for the particular activity pool by the Estimated or Total Activity base for that pool

Activity rate = Budgeted activity cost ÷ Estimated or Total Activity base

In the question above,

Budgeted Activity cost for material handling = $443,500

Estimated or Total Activity base for material handling (Summation of Total moves) = 1,460 + 760 + 3,700 = 5920 moves

Activity rate = $443,500 ÷ 5920

= $79.92 per move.

3 0
2 years ago
Getting merchandise floor-ready entailsA. distributing and dispatching.B. ticketing and marking.C. vertical supply chain wholesa
Katarina [22]

Answer:

B. ticketing and marking

Explanation:

Floor ready is the term used to refer to the merchandise which is ready to sale and that the merchandise is detailed with every description required.

That means it is ready with the size, quality, and quantity that is required to be marked.

Along with that it is even priced more properly and is already tagged with the label of description and price.

This all labeling and ticketing is basically done in the retail store before it is offered to the customer.

6 0
3 years ago
Other questions:
  • Guadalupe’s credit card has an APR of 23%, calculated on the previous monthly balance, and a minimum payment of 2%, starting the
    14·2 answers
  • Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for
    5·2 answers
  • We Do Bankruptcies is a law firm that specializes in providing advice to firms in financial distress. It prospers in recessions
    14·1 answer
  • ____ is not a characteristic common to all organizations. Select one: a. Equal authority and responsibility b. Common goal or pu
    5·1 answer
  • As a Certified Management Accountant, Grace is bound by the standards of ethical conduct issued by the Institute of Management A
    6·1 answer
  • If William performs plumbing upgrades for Patricia in exchange for her incorporating his business, then their __________________
    7·1 answer
  • MC 07 Countries A, B, and C are at a particular... Countries A, B, and C are at a particular level of economic integration. All
    8·1 answer
  • A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 e
    9·1 answer
  • When a nation's currency appreciates, its products become _________ to other countries, which ultimately _________ that nation's
    7·1 answer
  • The sum of the explicit and implicit costs incurred in the production process is called
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!