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viktelen [127]
3 years ago
8

A firm has a profit margin of 6% and an equity multiplier of 1.5. Its sales are $230 million, and it has total assets of $115 mi

llion. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
Ket [755]3 years ago
7 0

Answer:

18%

Explanation:

In this question, we use the DuPont Analysis which is shown below:

ROE = Profit margin × Total assets turnover × Equity multiplier

ROE = 6% × 2 × 1.5

        = 18%

The total assets turnover is shown below:

= Sales ÷ total assets

= $230 million ÷ $115 million

= 2

Simply we apply the ROE formula in which the profit margin is multiplied with the total assets turnover and the equity multiplier

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Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger bo
Keith_Richards [23]

Answer:

See below

Explanation:

Silver Enterprises

Post Manager Balance sheet

Current assets

$11,480

Other assets

$3,120

Goodwill

$6,790

Net fixed assets

$21,890

Current liabilities

$6,940

Longterm debt

$17,130

Equity

$18,650

Current assets = $9,200 + $2,280 = $11,480

Other assets = $2,300 + $820 = $3,120

Current liabilities = $4,960 + $1,980 = $6,940

Net fixed assets = $16,500 + $5,390 = $21,890

Long term debt = $4,390 + $12,740 = $17,130

Equity = $18,650

8 0
2 years ago
Trickle Corporation's 12 percent coupon rate, semiannual payment, $1,000 par value bonds mature in 25 years. The bonds currently
kap26 [50]

Answer:

The correct answer is 9.56%

Explanation:

Before tax cost of Debt = rate(nper,pmt,pv,fv) * 2

nper = 25*2 = 50

pmt = 1000*12%*1/2 = 60

pv = 1230.51

fv = 1000

Before tax cost of Debt = rate(50,60,-1230.51,1000)*2

Before tax cost of Debt = 9.56%

7 0
3 years ago
What is the SCOR model?
algol13

Answer:

SCOR stands for "supply chains operations reference".

Explanation:

It is a management tool used to address, improve, and communicate supply chain management decisions that happen within the basis of a company and with suppliers and the customers of that company.

3 0
2 years ago
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the lab
Elis [28]

Answer:

<u>Before buying the new equipment:</u>

Number of workers = 7

Production = 70 carts per hour

Worker wage = $15 per hour

Machine cost = $40 per hour

<u>After buying the new equipment: </u>

Number of workers = 6

Production = 74 carts per hour

Worker wage = $15 per hour

Machine cost = $50 per hour

(a) Labor productivity

Labor productivity = Number of carts produced per hour / Number of workers

Labor productivity (Before) = 70 / 7

Labor productivity (Before) = 10 carts per worker per hour

Labor productivity (After) = 74 / 6

Labor productivity (After) = 12.33 carts per worker per hour

(b) Multifactor productivity

Multifactor productivity = Carts produced / (Labor cost + Equipment cost)

Multifactor productivity = Carts produced / [(Number of workers x Worker wage) + Equipment cost)

Multifactor productivity (Before) = 70 / [(7*$15) + $40]

Multifactor productivity (Before) = 0.48 carts/dollar cost

Multifactor productivity (After) = 74 / [(6*$15) + $50]

Multifactor productivity (After) = 0.53 carts/dollar cost

(c) Increase in productivity

Increase in productivity = [(New productivity - Old productivity) / Old productivity] * 100

Increase in labor productivity = [(12.33 - 10) / 10] * 100

Increase in labor productivity = 0.233 * 100

Increase in labor productivity = 23.30%

Increase in multifactor productivity = [(0.53 - 0.48) / 0.48] * 100

Increase in multifactor productivity = 0.104167 * 100

Increase in multifactor productivity = 10.42%

6 0
3 years ago
Aaron earns $24.00 per hour with $36 per hour for hours in excess of 40 hours per week. He worked 50 hours at his job during the
Schach [20]

Answer:

$1,021

Explanation:

Net income is the net of Gross income and any taxes and deduction.

Income tax and FICA(OASDI and Medicare are calculated on the gross income and

First we calculate the total income using standard and overtime rate

Total Numbers of Hours worked in a week = 50 hours

Standard Hours = 40 hours

Rate of Standard Hours = $24 per hour

Rate of overtime = $36 per hour

Income

Standard = $24 x 40 = $960

Overtime = $36 x (50-40) = $360

Total  = $960 + $360 = $1,320

Income tax = Gross Income x Income tax rate = $1,320 x 15% = $198

FICA(OASDI and Medicare = Gross Income x rate = $1,320 x 7.65% = $101

Net Income = $1,320 - $198 - $101 = $1,021

7 0
3 years ago
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