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viktelen [127]
2 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]2 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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adell [148]

Answer:

Option C.

Explanation:

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There are numerous closing techniques, and the minor-point close is one of the techniques.

The minor-point close is the technique whereby the salesperson tries to intentionally gain the agreement of the customer or prospect on a minor point, and then uses it to assume that the sale is closed.

This technique is exemplified in the scenario presented above. Edward has concluded that Kristy wants to buy the black car, just because she has agreed that she liked it.

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3 years ago
If the expected returns of two stocks are the same but the standard deviations of the returns differ, which security is to be pr
serious [3.7K]
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A Beta of 0.5 means it changes (up/down) half as much as the general market. Sleepy blue chips such as GE, AT&T or power utilities fall in that category. Low Standard Deviations

Most stocks by definition pretty much track the market (Beta 1.0) so there are a lot of those. Middling Standard Deviations

So…it is dictated by your risk tolerance.
8 0
3 years ago
Do you think it is easier to increase or decrease government spending
Anna35 [415]
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2 years ago
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Which of the following expressions is correct?A. economic profit = total revenue - implicit costsB. accounting profit = economic
Ilya [14]

Answer:

B. accounting profit = economic profit + implicit costs

Explanation:

Implicit cost are the cost that already incurred but is not necessary to report such as opportunity cost. Whereas explicit cost are those expenses which involve the financial transaction and it is being paid.

Accounting profit is calculated by deducting the explicit cost from the revenue as follow.

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