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
Common unsponsored domain name extensions include:<br> .com<br> .org<br> jobs<br> .mobi
Leno4ka [110]
The answer should be .com
5 0
3 years ago
Sales revenue $944,200 Less: Cost of goods sold 598,100 Gross profit 346,100 Less: Operating expenses (includes depreciation exp
katovenus [111]

Answer:

$500

Explanation:

Net cash flow from operating activities is $500

4 0
2 years ago
A perfectly competitive firm produces​ 3,000 units of a good at a total cost of​ $36,000. The fixed cost of production is​ $20,0
kati45 [8]

Answer:

 A. ​Yes, it should continue to produce because the​ firm's revenues cover the total variable cost of​ $16,000. 

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. Market participants are price takers.

In the short run ,if price is less than average variable cost, the firm should shutdown.

Also, if total revenue is less than the total variable cost, the firm should shutdown into the short run.

Total revenue = $10 x 3000 = $30,000

Total cost = Fixed cost + variable cost

$36,000 = $20,000 + variable cost

Variable cost = $16,000

Total revenue is greater than total variable cost, so the firm should continue operations in the short run.

I hope my answer helps you

3 0
3 years ago
Under MACRS, the salvage value ____ is
tankabanditka [31]

Answer:

C. Ignored

Explanation:

Marcs is a tax depreciation system that helps to determine the actual cost of an asset by depreciating it yearly. There are many aspects of this technique that allows recovering the cost basis of various assets. In MACRS salvage value is completely ignored. This technique allows the measurement of the cost of an asset by completely ignoring the salvage value.

5 0
3 years ago
Shoppers on Amazon have differing needs that must be satisfied during the exchange, which often include the need for information
Bas_tet [7]

Answer: buyer requirements

Explanation: Differing needs such as the need for information, convenience, variety, and/or pre- or postsale services that  must be satisfied during an exchange are collectively known as buyer requirements which aid both buyers and sellers in the ordering process as they allow the seller to ask for any information needed to complete an order while allowing the buyer to communicate his/her needs to ensure that every order specification is met.

5 0
3 years ago
Other questions:
  • What is the 5 stage plan for productive meetings? - Why is this important and how will it improve the success of developing a ch
    7·1 answer
  • What amount of cash would result at the end of one year, if $15,000 is invested today and the rate of return is 8%
    11·1 answer
  • Which of the following is not a classification of peripheral device?
    6·2 answers
  • In implementing a lean production system you should work with suppliers to do which of the following? open facilities near your
    9·1 answer
  • Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five
    7·1 answer
  • Consider the market for film streaming services, tv sets, and movie tickets.for each pair, identify whether they are complements
    10·1 answer
  • Imagine for a moment that you're in charge of marketing smartphones to the rapidly growing market segment of very old consumers.
    9·1 answer
  • Always carry your license, proof of insurance, and the vehicle's ___________ in the vehicle with you when you drive.
    12·1 answer
  • True or false: In the United States, inflation reached double-digit rates in the 1970s and early 1980s but has since declined an
    14·1 answer
  • The main purpose of performance appraisal is to ________.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!