The elimination of organizations that operate between the producer and the consumer is called disintermediation. Disintermediation means that the user or the consumer is given direct access to information. Mediator or salesperson is not required and this type of organization is eliminated.
Answer:
a. Net income = Sales * profit margin
= $24 million * 10%/100
= $2.4 million
b. ROA = Profit / Total Assets
= $2.4 million / $21.1 million
= 0.11374
= 11.374%
c. ROE = Profit / (Total Assets - Debt)
= $2.4million / ($21.1million - $8.2million)
= $2.4million / $12.9 million
= 0.186
= 18.6%
Answer:
True
Explanation:
Payment of dividend by a corporation depicts better financial picture and stability in earnings. And like business expenses, even the dividend paid by corporations is deducted to arrive at taxable income.
While an expense merely reflects the costs incurred, dividends reflect viable financial position which attracts investments from investors and establishes public confidence.
