Answer:
D) 200 percent profit; 100 percent loss.
Explanation:
There is a 50% chance that the company will make profit (20% profit) and 50% chance that it will lose money (20% loss).
Balin borrows $90 and invests $10 from his own money.
50% profit chance = $120 - $90 = $30 (200% profit)
50% loss chance = $80 - $90 = -$10 (100% loss)
Answer:
True
Explanation:
Work in process refers to those goods which require further processing. When a department transfers work in process(WIP) to another department, the recipient department's stock of WIP is debited i.e debit the receiver principle.
Similarly work in process that is being transferred out of a department would be recorded like Purchase return i.e credit what goes out.
A debit in WIP account increases it's balance whereas a credit in WIP account reduces it's balance.
The appropriate response is competitor's resources. It can be strategic activities, for example, motivating force evaluating or improved administration offerings since they are less expensive to assault than huge scale key activities.
Answer:
20.91%
Explanation:
The following values is the details of a report gotten from Southern Light
Profit margin= 8.4%
Capital intensity ratio= 0.45
Debt to equity ratio= 0.60
Net income= $95,000
Dividend= $40,000
The first step is to calculate the return on equity
ROE= Profit margin×Total assets turnover×equity multiplier
= 8.4/100×1/0.45×(1+0.60)
= 0.084×2.222×1.6
= 0.2987×100
= 29.87%
The next step is to calculate the Plowback ratio
Plowback ratio= 1-(dividend/net income)
= 1-($40,000/$95,000)
= 1-0.421
= 0.579
Therefore, the sustainable growth rate can be calculated as follows
= ROE×Plowback ratio/1-ROE(Plowback ratio)
= 0.2987×0.579/1-0.2987(0.579)
= 0.17295/1-0.17295
= 0.17295/0.8271
= 0.2091×100
= 20.91%
Hence the sustainable growth rate for southern light is 20.91%
