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Leona [35]
3 years ago
13

Why do equity holders care more about roe than about​ roa?

Business
1 answer:
svetoff [14.1K]3 years ago
4 0

C. ROE measures how much equity holders are​ earning, while ROA measures how efficiently the bank is being run.

ROE = net income/ shareholder's equity

ROA= net income/total assets

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Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are
Savatey [412]

The Kraus Steel Company ended producing about 7900 tons of inventory during the month of October.

<h3>What is inventory?</h3>

The amount of finished goods available in the warehouses or storage of an organization during a given period, which is ready to be sold in the market, is known as the inventory.

The produced inventory can be calculated using the given information as,

Inventory produced=Beginning Work in Process-Ending Work in Process

Inventory Produced =11300-3400=7900 tons

Hence, the significance of inventory produced is aforementioned.

Learn more about inventory here:

brainly.com/question/14184995

#SPJ1

4 0
2 years ago
You are the county commissioner of hazard county. jeb brings a complaint before you that​ dwight's hog farm is creating a terrib
zubka84 [21]
The method that is not a recommended approach supported by externality theory to deal with this problem is the <span>Non-profit intervention. An example to this is to </span><span> test an intervention against a counterfactual case in which it is not in effect.</span>
3 0
4 years ago
On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature
Sauron [17]

Answer:

The bonds were issued at $87,590,959

Explanation:

The bonds will be issued at the present value of the coupon and maturity discounted by the market rate

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 6,000,000.000 ( 100 million x 6%)

time 30 (2051 - 2021)

market rate 7% = 7/100 = 0.07

6000000 \times \frac{1-(1+0.07)^{-30} }{0.07} = PV\\

PV $74,454,247.1010

PV of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   100,000,000.00

time   30.00

rate  0.07

\frac{100000000}{(1 + 0.07)^{30} } = PV  

PV   13,136,711.72

Total current value of the bonds:

PV coupon  $ 74,454,247.1010

PV maturity  $<u>  13,136, 711.7155 </u>

Total             $87,590,958.8165

8 0
3 years ago
Midwest Water Works estimates that its WACC is 10.5%. The company is considering the following capital budgeting projects:
krok68 [10]

Answer:

Projects A,B,C,D and E should be accepted

Explanation:

Based on the fact that each of the itemized projects has the same of level of risk as the company's existing assets, we suggest that the firm undertake those projects that gives a return rate which is above the current weighted average cost of capital of 10.5%

In essence,projects A,B,C,D and E should be accepted as they 12%,11.5%,11.2%,11% and 10.7% returns on investment respectively.

Projects F& G would be rejected on the premise that their rates of return are lower than what is currently obtainable in Midwest Water Works.

7 0
3 years ago
The Bonsai Nursery Corporation has $1,000 par value bonds with a coupon rate of 8% per year making semiannual coupon payments. I
nignag [31]

Answer:

9.78%

Explanation:

The yield to maturity can be determined using the rate formula in excel as shown below:

=rate(nper,pmt,-pv,fv)

nper is number of times coupon interest would be paid,which is 12 years multiplied by 2(semi-annual interest payment) i.e 24

pmt is the semi-annual interest which is $1000*8%/2=$40

pv is the current price of the bond at $876.40

fv is the face value of the bond which is $1000

=rate(24,40,-876.40,1000)=4.89%

Semi-annual yield is 4.89%

Annual yield is 4.89%*2=9.78%

The yield to maturity on these bonds is approximately 9.78%

6 0
4 years ago
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