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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%

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Answer:

The correct answer is:

false (b)

Explanation:

Reduction in the price of a good or service in a competitive market leads to an increase in quantity demanded, which in turn leads to an increase in the production quantity, to cater for the increase in the volume of demand. Hence the reduction in the price of Jacques's fire engines will increase demand and in effect increase the production quantity. With respect to the total revenue, depending on the extent of demand increase, the total revenue might increase or even decrease. If the total demand exceeds the previous demand to make up for the reduction in price, the total revenue will increase, if not so, the total revenue will decrease.  

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3 years ago
Marta’s Online Store Sells Accessories For A Widely Used Smartphone, And Her Current Customer Base Shares A Number Of Relevant C
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Answer:

3- Device Types

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Explanation:

These 2 settings can help Marta in targeting the specific audience she wants to.

  1. Location Settings allows your campaign to reach the location of your choice, where Marta feels that the most relevant audience belongs.  For example, if she feels that her customers mainly belong to Houston, so she could specify her campaign to Houston to save money instead of running the campaign in every part of the country.
  2. Device Type, specifying this category would allow limiting her audience to only specific people who are active on cellphones as mostly that's her customer base.
8 0
3 years ago
Worthy Ships initially issued 400,000 shares of $1 par stock for $2,000,000 in 2021. In 2023, the company repurchased 40,000 sha
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Answer:

Worthy Ships:

Treasury Stock account balance would be $80,000.

Explanation:

Treasury Stock account is a contra account to the Common Stock account.  Using the cost method, the account will have a debit entry and balance of $400,000 in 2023.  In 2024, with the resale of shares, the account will have a credit entry of $320,000.  This would bring the balance to $80,000 at the end of 2024.

8 0
3 years ago
Ten years ago, a smoothle at Kay's Smoothies cost $1.25. Today it costs $2.00. In order to attribute this price increase of smoo
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Answer:

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Explanation:

Inflation is defined as the decline of the purchasing power of a particular currency over a period of time. Which means that if a product cost $1 last two years and now costs $2 now, and its effect is also felt among other commodities, then inflation is confirmed as it is not limited to a particular product.

Therefore, if ten years ago, a smoothie at Kay's Smoothies cost $1.25 and today it costs $2.00, in order to attribute this price increase of smoothies at Kay's to inflation, the price of other products would need to have increased.

7 0
3 years ago
When a job order costing system is​ used, actual manufacturing overhead costs are debited to​ ________?
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