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posledela
3 years ago
6

MC algo 3-13 Equity Multuiplier Use the following information to answer this question Windswept, Inc. 2017 Income Statement ($ i

n millions) $ 8.700 Net sales Cost of goods sold 7,250 350 Depreciation Earnings before interest and taxes Interest paid $ 1,100 83 $ 1,017 Taxable income 356 Taxes 661 Net income Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2017 2016 2017 2016 $ 1070 $ 1,212 Cash $ 140 120 Accounts payable Long-term debt Accounts rec. 800 720 980 1,213 1,510 1,535 Inventory Common stock 3,150 450 2,890 $2.450 $ 2,375 Retained earnings Total 700 Net fixed assets 3,200 3,640 $ 6,015 $5,650 5,650 6,015 Total liab. & equity Total assets What is the equity multiplier for 2017? a) 2.08 times b) 2.42 times c) 3.01 times d) 1,68 times e) 1,26 times
Business
1 answer:
Helga [31]3 years ago
5 0

Answer:

The answer is Option D. 1.68 times

Explanation:

The formula for equity multiplier is:

Equity Multiplier = Total assets ÷ Total stockholder's equity

In 2017:

Total stockholder's equity = Common stock + Retained earnings

Total stockholder's equity = $2890 + $700 = $3590

Total assets = $6,015

Now, putting these values in the above formula, we get,

Equity multiplier = $6,015 ÷ $3,590 = 1.68 times

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A stock with a beta of 1.2 has an expected rate of return of 16%. If the market return this year turns out to be 10 percentage p
KiRa [710]

Answer:

rate of return on the stock is 4%

Explanation:

given data

stock beta = 1.2

expected rate of return = 16%

market return = 10%

to find out

rate of return on the stock

solution

we get here rate of return on the stock hat is express as

rate of return on the stock = expected rate of return - ( stock beta × market return )   ...........................1

put here value we get

rate of return on the stock = 16 % - ( 1.2 × 10% )

rate of return on the stock = 0.16 - ( 1.2 × 0.10 )

rate of return on the stock = 0.16 - 0.12

rate of return on the stock = 0.04

rate of return on the stock is 4%

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3 years ago
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Ilya [14]

Answer:

Decrease logistics support requirements.

Explanation:

Decrease logistics support requirements is the correct answer because the increase in reliability decreases the requirement to correct the commodity or equipment. Therefore, the logistic support decreases which further decreases the manpower waste. Additionally, the good reliability shows that the product's quality is good and it will work efficiently for a longer time period. Thus, a good quality product requires less logistic support.

3 0
3 years ago
A principle under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable
andriy [413]

Answer:

Objective Theory

Explanation:

The Objective theory states that the intent to form a contract will be judged by outward objective facts such as the words and actions of the party instead of the secret, subjective intentions. This theory replaced the Subjective theory in the late nineteenth century. The former theory was of the opinion that the meeting of minds, which translates to the unexpressed intentions of the party would form a basis for interpreting the intent to form a contract.

The objective theory is important as it advocates freedom to a fair hearing, freedom of contract, and personal independence or sovereignty.  

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3 years ago
Access Macros are built from a set of predefined actions, allowing you to automate common tasks.
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TureAnswer:

Explanation:

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3 years ago
How does unemployment rate help you determine if the economy is strong or weak
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