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ch4aika [34]
3 years ago
13

Jack corp. Has a profit margin of 5.1 percent, total asset turnover of 2.3, and roe of 19.64 percent. What is this firm's debt-e

quity ratio? (do not round intermediate calculations and round your answer to 2 decimal places,
e.G., 32.16.)
Business
1 answer:
anygoal [31]3 years ago
3 0

Answer: Jack Corp's D/E ratio is 0.67.

We follow these steps to arrive at the answer:

We begin with the DuPont Identity for Return on Equity (RoE)

RoE = Net Profit Margin * Asset turnover Ratio * Equity Multiplier

Substituting the values from the question in the DuPont identity we get,

0.1964 = 0.051 * 2.3 * Equity Multiplier

Equity Multiplier = \frac{0.1964}{0.051*2.3}

Equity Multiplier = 1.674339301


Equity Multiplier = \frac{Total Assets }{Equity}

So,

\frac{1}{Equity multiplier} =\frac{Equity}{Total Assets}

Substituting the value of equity multiplier in the formula above we get,

\frac{Equity}{Total Assets} = 0.597250509

Now,

\frac{Equity}{Total Assets} + \frac{Debt}{Total Assets} =1

So,

\frac{Debt }{Total Assets} = 1 - \frac{Equity}{Total Assets}

\frac{Debt }{Total Assets} = 1 - 0.597250509


\frac{Debt }{Total Assets} = 0.402749491


Now that we have the proportions of debt and equity to total assets, we can  find the Debt Equity (D/E) ratio as follows:

\frac{D}{E} = \frac{\frac{Debt}{Total Assets}}{\frac{Equity}{Total Assets}}

Substituting the values we get,

\frac{D}{E} = \frac{0.402749491
}{0.597250509
}

\frac{D}{E} = 0.674339301


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DochEvi [55]

Answer:

Most American cars are delivered f.o.b. Detroit; however, imports are not.

Explanation:

The completely correct sentence is;

Most American cars are delivered f.o.b. Detroit; however, imports are not.

Fob is an acronym for free on board, hence it should have "dots" in between.

Semicolon indicates a pause or that an explanation continues, as it joins two (2) independent clauses.

8 0
3 years ago
A newsvendor orders the quantity that maximizes expected profit for two products, X and Y. The critical ratio for both products
Tamiku [17]

Answer:

A. Product A, because it has less certain demand.

Explanation:

According to the statement, the product X (A) is the one with the highest proportion of standard deviation, that is, it has a more uncertain demand. Taking into account this condition, it is expected that the number of optimal products will be greater because it has an average and critical relationship. For this reason, it is expected that the news seller will lean towards the first product, since it will generate higher income as explained at the beginning.

5 0
3 years ago
Read 2 more answers
Vault-Tec. has annual fixed costs excluding depreciation of $1,000,000 and variable costs that are 75% of sales. If depreciation
alina1380 [7]

Answer:

Vault-Tec's break-even level of sales ==$3,000,000  

Explanation:

Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss.

It is calculated using this formula:

Break-even point (sales) = Fixed cost/c/s ratio.

c/s means contribution to sales ratio

C/s ratio = (sales - variable cost)/sales

C/S is the proportion of sales value that is earned as contribution. its is sales less variable costs.

So if for an instance, variable costs are 60% of sales, then contribution will be 40% of sales i.e (100-60)% .

<em>Now we can apply these concepts to our questions:</em>

c/s =( 100-75)% = 25%

Break-even point( sales) = (1,000,000- 250,000)/25%

                                         = 750,000/0.25

                                          =$3,000,000

<em>Note that depreciation is excluded from the fixed costs because it is a non-cash flow item.</em>

Vault-Tec's break-even level of sales ==$3,000,000

3 0
3 years ago
As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the sameIf the margi
Sati [7]

Answer:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) Multiplier is 3.30.

(c) Total impact on spending is $3,300.

Explanation:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the same.

In economics, the higher the MPC, the higher the spending multiplier.

Therefore, as the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) If the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth).

This can be calculated as follows:

Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.70) = 1 / 0.30 = 3.33333333333333

Rounding to the nearest tenth, we have:

Multiplier = 3.30

(c) Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?

Total impact on spending = Increase in government spending * Multiplier = $1,000 * 3.30 = $3,300

3 0
3 years ago
The percentages in the table represent the performance change from the previous month. Consider the impact of each metric on cus
Stolb23 [73]

Based on the metrics given, we can say that shipping errors were <u>not very impactful </u>on customer questions.

<h3>Relationships between metrics</h3>
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What we then realize is that even though questions kept rising, shipping errors only rose once which means that shipping errors did not account for much of customer questions. If it did, the customer questions would have stayed constant as well.

In conclusion, shipping errors were not very impactful.

Find out more on performance metrics at brainly.com/question/4295533.

5 0
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