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mamaluj [8]
3 years ago
10

You are thinking of investing in Wave Runnerz, Inc. You have only the following information on the firm at year-end 2013: net in

come = $10 million, total debt = $65 million, and debt ratio = 35 percent. What is Wave Runnerz's ROE for 2018?
Business
1 answer:
tatuchka [14]3 years ago
6 0

Answer:

8.28%

Explanation:

Given that,

Net income = $10 million

Total debt = $65 million

Debt ratio = 35 percent

Debt ratio = Total debt ÷ Total assets

35 percent = $65 million ÷ Total assets

Total assets = $65 million ÷ 35 percent

                     = $185,714,286

Wave Runnerz's ROE for 2018:

= Net income ÷ Equity

= $10,000,000 ÷ (Total assets - Debt)

= $10,000,000 ÷ ($185,714,286 - $65,000,000)

=  $10,000,000 ÷ $120,714,286

= 0.0828 or 8.28%

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Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discr
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Explanation:

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The keywords for this question are TAXES and SPENDING.

The means that a Discretionary FISCAL policy includes Taxes and Spending.

Now the way to close the Recessionary gap that is opening is to put more money into the Economy. The Government can do this by REDUCING TAXES which will means people have more money to spend and ADDITIONAL SPENDING on NATIONAL PARK FACILITIES as this means that the government is pumping more money into the Economy.

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3 0
3 years ago
What is the difference between advertising and personal selling
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6 0
3 years ago
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4 0
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