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
Triss [41]
3 years ago
8

Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE? Assets $200,0

00 Interest rate 8% D/A 65% Tax rate 40% EBIT $25,000
Business
1 answer:
KatRina [158]3 years ago
4 0

Answer:

12.51%

Explanation:

return on equity (ROE) = net income / shareholders' equity

since assets = $200,000

liabilities + equity = $200,000

liabilities = $200,000 x 65% = $130,000

equity = $200,000 - $130,000 = $70,000

net income = (EBIT - interests) x (1 - taxes)

  • EBIT = $25,000
  • interests = $130,000 x 8% = $10,400
  • 1 - taxes = 1 - 40% = 0.6

net income = ($25,000 - $10,400) x 0.6 = $8,760

ROE = $8,760 / $70,000 = 12.51%

You might be interested in
( By the way, this is a question related to financial accounting.) International Investment Group is looking to invest $95,000 i
matrenka [14]

Answer:

The correct option is;

The company's Financial Books

Explanation:

In order to effectively and clearly let interested parties access pertinent information about a company, financial books are kept which show the companies economic performance and its position related to financing. Information about a company can be located in financial statements including shareholders equity, cash flow statements, income statements and balance sheets.

8 0
3 years ago
In Chapter 7 bankruptcy a debtor
nalin [4]

Answer: A. is required to draw up a petition listing all assets and liabilities.

Explanation:

Bankruptcy simply refers to the legal whereby an economic entity is unable to repay their outstanding debts. In this case, the individual or business will need to sell its remaining assets in order to pay the liabilities.

Due to the above reason, then the debtor will be required by the government to list all of their assets and the liabilities that it owns and this will be used in determining whether the obligation has been fulfilled or not.

3 0
3 years ago
Jansen Company’s general ledger showed a checking account balance of $25,120 at the end of May 2021. The May 31 cash receipts of
Alexxandr [17]

Answer:

$2,000

Explanation:

Use the format

Jansen Company’s

Bank reconciliation as of May 31, 2013.

Balance as per Bank Statement

Add Outstanding Checks

Less Unpresented Checks

Balance as per Cash Book

5 0
3 years ago
What does it mean to “diversify” your portfolio?
Darya [45]

Answer:

C. Spreading risk by investing your money in a variety of funds and investment options.

Explanation:

To “diversify” a portfolio is to invest in a variety of assets as opposed to focusing on one type of asset. To diversify is to invest in different classes of assets to minimize the risks associated with investing.

Diversification minimizes risk by spreading it in the different classes of assets. Should returns from one class of assets be unfavorable, the losses incurred will be neutralized by positive returns from the other assets.

8 0
2 years ago
Why are indexing rules important when filing names alphabetically? (Obj. 1)
almond37 [142]

Answer:

Why are indexing rules important when filing names alphabetically? ... Written rules provide a guide to a filer for determining the indexing units consistently. If filing is performed consistently and fast, accurate retrieval is more likely in an alphabetic file

Explanation:

hope this helps!!

6 0
2 years ago
Other questions:
  • In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price
    5·1 answer
  • ABC common stock has been moving up recently and one of your clients purchased several hundred share of the stock this morning.
    8·1 answer
  • Working with which of these systems requires a technician that has been certified in an EPA-approved course?
    9·1 answer
  • When a business doesn't have control of all the environmental forces, it is called ________ design. For example, Acme Medical re
    13·1 answer
  • Constance Hairston obtains a 20​-year, ​$128,500 mortgage at 7​% on a house selling for $128,500. Her monthly​ payment, includin
    6·1 answer
  • Which of the following advertising mediums can be expensive and takes a long time to plan and produce, but you are able to selec
    8·1 answer
  • One of the themes that came out of the survey responses is that employees take their responsibility of serving fresh, hot food q
    5·1 answer
  • Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
    6·1 answer
  • The slope of the security market line represents the:__________a) risk premium on an individual asset. b) beta coefficient. c) r
    5·1 answer
  • Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!