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SSSSS [86.1K]
3 years ago
13

Saunders, Inc., has a ROE of 18.7 percent, an equity multiplier of 2.53 times, sales of $2.75 million, and a total assets turnov

er of 2.7 times. What is the firm's net income? (Round your final answer to two decimal places.)
Business
2 answers:
Elena-2011 [213]3 years ago
5 0

Answer:

Net Income = $75,281.80

Explanation:

Given that

Total assets turnover = sales/total assets

Where

Sales = 2.75 million

Asset turnover = 2.7

Thus

Total assets = 2750000/2.7

= $1,018,518.52

Also,

EM.= Total assets/equity

Where

EM = 2.53

Assets = $1,018,518.52

Thus,

Equity = 1,018,518.52/2.53

= $ 402,576.49

Finally,

Recall that

ROE = Net Income ÷ Equity

Therefore,

Net income = ROE × Equity

Where

ROE = 18.7 % = 0.187

NI = 0.187 × 402576.49

= $75,281.80

pashok25 [27]3 years ago
4 0

Answer:

Explanation:

Given:

Asset turnover = 2.7 times

ROE = 18.7 %

Sales = $2.75 million

Equity multiplier, EM = 2.53 times

Return on asset, ROA

ROE = ROA × EM

18.7/100 = ROA × 2.53

ROA = 0.0739

ROE = Net Income/Shareholders' Equity

Asset turnover, AT = Net sales/total asset

Total asset = net sales ÷ AT

= 2,750,000 ÷ 2.7

= $1,018,500

ROA = Net income/total assets

Net income, NI = 0.0739 × $1,018,500

= $ 75,270

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Which of the following is a disadvantage of a questionnaire?
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The sentence that shows the disadvantage of a questionnaire is option D. The sample of individuals who respond may not be representative of the population.

<h3>What is a questionnaire?</h3>

A questionnaire is a set of printed or written questions with a choice of answers, devised for the purposes of a survey or statistical study.

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A representative gives a seminar to investors, making a presentation about successful hedge fund strategies. It is attended by 1
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3 years ago
Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $1
masya89 [10]

Answer:

Amount deposit = $118,411.4 (Approx.)

Explanation:

Given:

Future amount = $150,000

Rate of interest = 6% compounds semiannual

Number of year = 4 year

Find:

Amount deposit

Computation:

Compounds semiannual

So,

Rate of interest = 6% / 2 = 0.03

Time taken = 4 x 2 = 8 times

So,

A = P[1+r]ⁿ

150,000 = p[1+0.03]⁸

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4 0
2 years ago
"Expected Return Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a
skad [1K]

Answer:

  • <u>15.7%</u>

Explanation:

The <em>price</em> of a <em>stock</em> can be modeled by the present value of the stream of future <em>dividends</em> discounted at a rate equal to the<em> return expected</em>.

The equation, when the dividends are expected to <em>grow</em> at a constant rate, less than the return rate is:

        Price_0=\dfrac{Div_1}{r-g}

Where:

  • Price₀ is the <em>current price</em>: $44.12
  • Div₁ is the <em>dividend </em>to be paid a year from now: $0.46 × 1.145 = $0.53
  • g is the expected constant <em>growth rate</em>: 14.5% = 0.145
  • r is the <em>expected return</em>

Then, you can solve for r:

      r=\dfrac{Div_1}{Price_0}+g

        r=\dfrac{\$ 0.53}{\$ 44.12}+0.145=0.157=15.7\%

4 0
3 years ago
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