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aivan3 [116]
3 years ago
11

For the past year, Allargando Company recorded sales of $500,000 and average operating assets of $250,000. What is the margin th

at Allargando Company needed to earn in order to achieve an ROI of 12%? Multiple Choice 6.00% 12.00% 2.00% 8.33%
Business
1 answer:
miskamm [114]3 years ago
3 0

Answer:

6.00%

Explanation:

The company's desired return amount is given by the ROI multiplied by the amount invested, in this case, the average operating assets:

R=0.12*\$250,000\\R=\$30,000

The margin required in order to achieve a return of $30,000 is given by:

M= \frac{R}{sales} =\frac{\$30,000}{\$500,000} \\M= 0.06 = 6.00\%

Allargando Company's margin must be 6% in order to achieve a ROI of 12%.

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Assume that investors can borrow and lend at risk-free rate of 5%. The optimal tangent portfolio on the efficient frontier has a
gizmo_the_mogwai [7]

Answer:

B. Portfolio B with E(R)=13% and STD=18%

Explanation:

The computation is shown below;

Reward to risk ratio = (15% - 5%) ÷ 20% = 0.5

The porfolio should be in line i.e.

= 0.05 + 0.5 × standard deviation

For portfolio A

= 0.05 + 0.5 × 25

= 17.5%

For portfolio C

= 0.05 + 0.5 × 1

= 5.5%

Portfolio B, the std is 18%

So,

= 0.05 + 0.5 × 18%

= 14%

5 0
3 years ago
Increased capital investment is generally used for what business expenses?
Aleksandr [31]
A. Capital expenditures
3 0
2 years ago
You are the CFO of a publicly-traded company in a very competitive industry. You are preparing the annual report and SEC filings
tankabanditka [31]

Answer:

Investors structure is a significant part of an organization. In this manner, it is important to provide the significant data so they can take inform decision. The yearly report give the imperative data the utilization of which they can shape solid justification for taking choices. In any case, most of the time, dominant part of the investors/speculators barely spend their valuable time on examining every single figure gave in the financials. They experience the nuts and bolts and basics as it were. In this manner just material realities must be unveiled in the reports as contenders might be peering toward on the subtleties. That is, it is significant not to reveal the "exchange insider facts" of the organization in its reports. A lot of data prompts data over-burden with which contenders may exploit. It ought to likewise be dealt with that what must be incorporated is incorporated as a general rule.

3 0
3 years ago
Proponents of the recently introduced tax on sales of new luxury boats had argued that a tax of this sort would be an equitable
Vesnalui [34]

Answer: Option (B) is correct.

Explanation:

The new tax on sales of these luxury boats considered to be a reasonable way to boost government revenue thereby tax burden would most likely fall only on the wealthy individual and therefore neither they nor any other individual would suffer.  

But 20% of employees hired by manufacturers of these luxury boats lost their jobs as a result of the respective tax.

If true, the following will most strongly support the above arguments: The tax would induce a net gain in revenue created by tax for the state only if yearly revenue that it creates goes beyond the total of yearly tax-revenue decline resulting from employees loss of jobs.

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3 years ago
Consider the market for portable air conditioners in equilibrium. a summer of unseasonably cool weather would cause:______
Julli [10]

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause both the equilibrium price and quantity to decrease. A market-clearing price, often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal.

The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like. By setting the supply function to equal the demand function, Qs = Qd, you may determine the equilibrium price.

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4 0
2 years ago
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