1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
Flint Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capac
ddd [48]

Answer:

Please see the answers below:

Explanation:

1.

Debit: Equipment         $912,000

Credit: Notes Payable                 $912,000

To record purchase of equipment at zero interest bearing note Central Michigan.

2.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 1st year Installment and Interest.

3.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 2nd year Installment and Interest.

4.

Debit: Depreciation Expense          $91,200

Credit: Accumulated Depreciation               $91,200

To record Depreciation Expense on Equipment over the life of 10 years with no salvage value. (Straight Line Depreciation is employed).

6 0
3 years ago
Pump prices slide as crude oil falls to​ six-year low The average price for regular gasoline at U.S. pumps fell almost 4 cents i
max2010maxim [7]

Answer:

lower the cost of producing gasoline and increase the supply of gasoline 

Explanation:

Crude oil is an input needed in the production of gasoline. If the price of crude oil falls, it would become cheaper to make gasoline and therefore the supply of gasoline would increase.

5 0
3 years ago
ABC Ltd. purchased a new 3-D printer for $500,000 at the beginning of year 1. Although this printer is expected to last for 10 y
Klio2033 [76]

Answer:

ɨt աɨʟʟ ɦaʋɛ ʟօst ɨt's ʍaʀҡɛt ʋaʟʊɛ

5 0
2 years ago
Jenny, owner of an ice cream parlor, has been experimenting with different flavors to create a new exotic ice cream for her cust
Alecsey [184]

Answer:

Lol this is easy

Explanation:

B C Or D

its C

4 0
3 years ago
________ involves creating a video, e-mail, mobile message, advertisement, or other marketing event that is so infectious that c
slavikrds [6]

The means that involves creating a video, email, mobile message, advertisement, or another marketing event that is so infectious that customers will seek it out or pass it along to their friends is Viral Marketing.

<h3>What do you mean by marketing?</h3>

Marketing refers to the activities undertaken by a company for promoting the buying or selling of a product.

Viral marketing refers to spreading information about any product or service from person to person by word of mouth or sharing via the internet or email.

Viral marketing will increase a company's reach and customer base.

Therefore, viral marketing is the correct choice.

Learn more about Marketing here:

brainly.com/question/13414268

#SPJ1

6 0
2 years ago
Other questions:
  • The income effect of a price change predicts that a _____ in a good's price will _____ consumer purchasing power, leading to a(n
    12·1 answer
  • Nelson, a minor, misrepresents his age when agreeing to a contract to buy a restored, antique soda vending machine from old is n
    6·1 answer
  • Live Trap Corporation received the data below for its rodent cage production unit.
    9·1 answer
  • Consider the market for minivans (Some would describe a minivan as a family car). Looking at the two statements, which one is tr
    10·1 answer
  • The Short-run Aggregate supply (AS) slopes up, because _______________________________________, firms have an incentive to produ
    13·1 answer
  • The Joint Stock Company is:
    15·2 answers
  • Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. On February 1, 2013, sh
    6·1 answer
  • Convenience samples are useful for pilot studies, for testing the reliability of measures to be used in a larger study, for deve
    13·1 answer
  • Broad, Inc. had a beginning inventory of $50,000 and an ending inventory of $80,000. Its Cost of Goods Sold for the year was $97
    13·1 answer
  • Can I Plss get some help on this thank you
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!