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
marysya [2.9K]
3 years ago
12

Consider a retail firm with a net profit margin of 3.42 %​, a total asset turnover of 1.88​, total assets of $ 45.9 ​million, an

d a book value of equity of $ 18.6 million. a. What is the​ firm's current​ ROE? b. If the firm increased its net profit margin to 4.19 %​, what would be its​ ROE?
Business
1 answer:
love history [14]3 years ago
4 0

Answer:

The answer is a. <u>$15.88%</u>

                       b. <u>19.46%</u>

Explanation:

a.   Equity multiplier =  total assets /shareholders equity

     Equity multiplier = $ 45.9 ​million/  $ 18.6 million= 2.47

ROE = net profit *  asset turnover * Equity multiplier

ROE = 3.42% * 1.88​ * 2.47=  <u>$15.88%</u>

<u></u>

b. ROE = net profit *  asset turnover * Equity multiplier

    ROE = 4.19 %​ * 1.88​ * 2.47 = <u>19.46%</u>

You might be interested in
Town A, in one hour, can produce either 4 hotdog buns, or 10 sausages. Town B, in one hour, can produce either 8 hotdog buns, or
katrin [286]

Answer:

The answer is 27 hours

Explanation:

Solution

The Comparative advantage depends on  production of the lower opportunity cost

The opportunity cost of a production is =maximum production of other good /maximum production of the good

Now,

The opportunity cost of hot dog bun for town A =10/4=2.5

Thus,

The opportunity cost of hot dog bun for town B=6/10=0.6

So,

The  town B has a comparative advantage in hot dog buns and A in sausages

Town A will produce-only sausages and it will take the time of  

time in hours =total required a quantity of the good /number of products in an hour

Now,

The time for Town A for sausages=120/10=12 hours

The time for Town B for hot dog buns=120/8=15 hours

Therefore, The total time =12+15=27 hours.

6 0
3 years ago
Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks. Each researcher want
leva [86]

Answer: Individual interviews

Explanation: An individual interview can be seen as an experimental method of acquiring information from an original source to gather non-numerical information with a small number of respondents to discuss in detail their viewpoints on a specific idea, program or circumstance.

Here, the Marine Midland Bank sent out their researchers to discuss with the head of each household in the community the reason for not checking accounts and credit cards with the bank. It can be carried out in 15-60 minutes.

8 0
3 years ago
At Midland Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The uni
amid [387]

Answer: $80

Explanation:

Since the fixed costs are $180,000 and variable costs are $540,000, then the total cost will be:

= Fixed cost + Variable cost

= $180000 + 540000

= $720000

Since there are 9000 units, then the unit sales price will be:

= $720000 / 9000

= $80

The unit sales price is $80

7 0
3 years ago
You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $860.66 every month for the next
WINSTONCH [101]

Answer:

The actual effective annual rate is <u>3.33%</u>.

Explanation:

Effective Annual Rate (EAR) refers to an interest rate has been adjusted for compounding over specified period of time.

Effective annual rate can therefore be described as the interest rate that paid to an investor in a year after compounding has been adjusted for.

Effective annual rate can be computed using the following formula:

EAR = [(1 + (i / n))^n] - 1 .............................(1)

Where;

i = Annual interest rate claimed by the dealer = 3.28%, or 0.0328

n = Number of compounding periods or months = 12

Substituting the values into equation (1), we have:

EAR = [(1 + (0.0328 / 12))^12] - 1 = 0.0332976137123635

EAR = 0.0333, or 3.33% approximately.

Therefore, the actual effective annual rate is <u>3.33%</u>.

4 0
3 years ago
Frictional unemployment occurs because in a world of imperfect information, it takes ________ for people to find jobs.
deff fn [24]

Because it takes<u> time</u> for people to find work in a society with poor information, frictional unemployment happens.

The unemployment that results from regular labor turnover, such as persons joining and leaving the labor force, as well as the continuous creation and destruction of jobs, is known as frictional unemployment. It comprises employees who are either looking for employment or holding out for a job soon.

Frictional unemployment has the following examples: employees looking for new jobs after quitting their existing ones, employees want to shift careers. Those looking for their first job after graduating from college or those starting their first career in the workforce.

To learn more about frictional unemployment

brainly.com/question/27108843

#SPJ4

6 0
2 years ago
Other questions:
  • On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On J
    13·1 answer
  • Compared with a career , a job ?
    11·2 answers
  • The president wishes to increase spending for education by $4 billion but also maintain a balanced budget. Therefore, taxes will
    9·1 answer
  • The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entri
    11·1 answer
  • Paul and his friend tori make decorative art out of silver spoons. They want to start a business that they can easily dissolve w
    9·1 answer
  • Consider the following information for a simultaneous move game: If you charge a low price (LP) and your rival charges a LP, you
    15·1 answer
  • Jim is the daytime supervisor for an automobile assembly line. He supervises 45 people who perform relatively routine jobs that
    9·1 answer
  • All accounting systems ______. (Select all that apply.) Multiple select question. record and summarize financial effects of tran
    10·1 answer
  • In a market economy economic activity is guided by.
    12·1 answer
  • Which buyer agreement document provides the greatest advantage for you in your relationship with a potential buyer
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!