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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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Pug Photoshop sold $2,900 in gift cards on a special promotion on October 15, 2021, and sold $4,350 in gift cards on another spe
NikAS [45]

Answer:

the deferred revenue account is $2,900

Explanation:

The computation of the deferred revenue account is as follows;

= November sales - redemption of November and December month

= $4,350 - $435 - $1,015

= $2,900

Hence the deferred revenue account is $2,900

It could be come after applying the above formula

Therefore the correct option is 2nd

3 0
3 years ago
An all-equity firm is considering the following projects:
Elza [17]

Answer:

a)

Project Y and Project Z

b)

Project X and Project Y

c)

Project X and Project Z

Explanation:

Apply the CAPM to calculate the required return for each project as followed:

Project W: 4% + 0.75 * (11%-4%) = 9.25%

Project X: 4% + 0.90 * (11%-4%) = 10.3%

Project Y: 4% + 1.15 * (11%-4%) = 12.05%

Project Z: 4% + 1.45 * (11%-4%) = 14.15%

So, for:

a)

Which projects have a higher expected return than the firms 11 percent cost of capital: Project Y 12.8% and Project Z 13.9% which are given.

b)

Project should be accepted is project that has expected returns higher than required return which is Project X and Project Y.

c)

Using the firm's overall cost of capital as a hurdle rate:

Project Z will be accepted which is incorrect because its Required returned is higher than its expected returns ( 14.15% > 13.9%)

Project X will be rejected which is incorrect because its Required returned is lower than its expected returns ( 10.3% < 10.8%).

5 0
4 years ago
How many pounds of garbage does the average american produce each day
Maslowich

Answer:

5.91 pounds of trash a day

Explanation:

yes

4 0
4 years ago
Read 2 more answers
Accounts payable: Select one: a. Are amounts owed to suppliers for products and/or services purchased on credit. b. Are long-ter
Nutka1998 [239]

Answer:

The correct answer is letter "A":  Are amounts owed to suppliers for products and/or services purchased on credit.

Explanation:

Accounts Payable is the amount of the total invoices currently awaiting payment by the company. These invoices are from suppliers of products and services that have recently been delivered. They are usually due within 15, 30 or 45 days after receiving the invoice from the vendor.

6 0
3 years ago
Sears, Roebuck and Company was a pioneer in: a. providing electric power for New York City b. manufacturing cheap, practical clo
Serjik [45]

Option C

Sears, Roebuck and Company was a pioneer in: selling goods by mail

<u>Explanation:</u>

The endurance of Sears has traversed and incorporated the emergence of contemporary American purchaser habits. Sears berthed the platform for today’s omnipresent online marketplace by their fabulous inventory and the colossal mail-order deals it performed for above a centenary.

Mail-order firms like Sears held capable to enter underserved pastoral regions by pitching on modish foundations, such as the tracks that connected far-flung sections of the nation. It taught millions of purchasers regarding mail-order systems, such as transportation, payment methods, exchanges, and replacements.

8 0
3 years ago
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