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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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According to the midpoint method, the price elasticity of demand for tomatoes between point X and point Y is approximately (1.8 or 0.56 or 0.09 or 0.05) , which suggests that the demand for tomatoes is (elastic or 
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Millions of software programs have been created and have helped to improve the economy. This is an
I am Lyosha [343]

Answer:

new technology.

Explanation:

An information system or technology can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.

Generally, it is an integral part of human life because individuals, organizations, and institutions rely on information systems and technology in order to perform their duties, functions or tasks and to manage their operations effectively. For example, all organizations make use of information systems for supply chain management, process financial accounts, manage their workforce, and as a marketing channels to reach their customers or potential customers.

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1. Hardware.

2. Software.

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4. Human resources.

5. Telecommunications.

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Basically, these new technologies have helped to simplify the process of producing goods and services effectively and efficiently to meet the unending needs and requirements of the consumers.

3 0
3 years ago
Krell Industries has a share price of $ 22.77 today. If Krell is expected to pay a dividend of $ 1.09 this year and its stock pr
hoa [83]

Answer:

Dividend yield is 4.79%

Cost of equity is 11.64%

Explanation:

The dividend yield on Krell Industries share price is the dividend of $1.09 divided by the price of the share today of $22.77

dividend yield=$1.09/$22.77=4.79%

The equity cost of capital can be calculated from the share price formula given below by changing the subject of the formula to cost of equity,r.

stock price=Do*(1+g)/r-g

Do is the dividend  paid this year of $1.09

g is the dividend growth of dividend which is computed thus:

g=share price at end of the year-share price now/share price now

g=($24.33-$22.77)/$22.77=6.85%

r is the unknown

stock price is $24.33

24.33=1.09*(1+6.85%)/(r-6.85%)

24.33=1.164665 /r-6.85%

r=(1.164665 /24.33)+6.85%

r=11.64%

3 0
3 years ago
Exercises: Decide for the following if they are Economic resource
erik [133]

Answer:

B

Explanation:

Fertile agricultural land can be farmed or sold, either way providing economic resources

5 0
3 years ago
In 2020, Bertha Jarow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor f
mina [271]

Answer and Explanation:

a. The net long term capital loss would be $7,000

And, the net short term capital gain would be $14,000 ($21,000 - $7,000)

So as a result the overall net short term capital gain is $7,000

b. Since there is a loss arise from the personal residence of $28,000 so the blank would be filled by the amount i.e. $28,000 and the rest of the things would be alright.

7 0
3 years ago
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