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
__________ are electronic markets in which banks and institutional traders buy and sell various currencies on behalf of business
Yakvenalex [24]

<u>Foreign Exchange Market</u> are electronic markets in which banks and institutional traders buy and sell various currencies on behalf of businesses and other clients

<h3>What is Foreign Exchange Market?</h3>

A decentralized, open market where currencies are traded on a worldwide scale is known as the foreign exchange market. For every currency, this market establishes exchange rates. It covers every facet of acquiring, disposing of, and exchanging currencies at the going rate or set rate.

<h3>Why foreign exchange is important?</h3>

Foreign exchange refers to the exchange of various national currencies or units of account. It is crucial because a country's economic health and, consequently, the happiness of all its citizens, are determined by the exchange rate, or the cost of one currency in relation to another.

To know more about Foreign Exchange visit:

brainly.com/question/11135015

#SPJ4

3 0
2 years ago
Which of the following statements is FALSE?
soldi70 [24.7K]

Answer: The following statements is false: <u><em>Mutual aid and assistance arrangements and Memorandums of Understanding (MOUs) cannot be used for supplementing incident staff.</em></u>

The above statement is wrong since mutual aid, assistance arrangements and memorandums of understanding can be used for supplementing incident staff.

<u><em>Therefore, the correct option is (c).</em></u>

8 0
3 years ago
If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additiona
OleMash [197]
Pulsing advertising does exactly that, continuous advertising year round and then a bump in advertising when sells peak. Pulsing<span> combines </span>flighting<span> and continuous </span><span>scheduling.</span>
6 0
3 years ago
Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year
anyanavicka [17]

Answer:

$81,000

Explanation:

Segment margin is derived by deducting all expenses that are directly traceable to the segment and it does not include corporate common expenses.

Particulars                         Amount

Contribution                       $132,000  [33,000*(8-4)]

Less: Direct fixed cost      <u>($51,000)</u>

Segment Margin               <u>$81,000</u>

So, Carter's segment margin for the West Division is $81,000.

8 0
3 years ago
Desmond, a US citizen, opens and operates a jewelry store in Lisbon, Portugal. This counts as: investment for Desmond and US for
Katen [24]

Answer: Investment for Desmond and US foreign direct investment.

Explanation:

This is an investment for Desmond because he owns the store. He is therefore the equity shareholder and investor into the store.

It is also a U.S. Foreign Direct Investment (FDI) because FDI is what describes a situation where an entity from a country goes to another country and sets up a business there that they will own and operate. Desmond being a U.S. citizen is operating a store in another country so this is U.S. FDI.

3 0
3 years ago
Other questions:
  • During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 fo
    10·1 answer
  • At the beginning of the current year, X Company had assets of $600, liabilities of $300, and common stock of $100. During the cu
    6·1 answer
  • Sarah and Luke each purchased $125 of merchandise from Owens Grocers on account. The terms of both sales were 1/7, n/30. Account
    7·1 answer
  • TRUE OR FALSE. The amount of stock a person owns determines the strength of his or her voting power. (if correct, will receive B
    5·1 answer
  • Engaging directly with the customer costs a business less in advertising then using traditional channels such as magazines and b
    15·1 answer
  • Jonathan, a salesperson for a food processor manufacturing company, is selling his company's new juicer to prospective customers
    11·2 answers
  • When the economy falters, people often look to the government to help push the economy forward again. In fact, the government us
    15·1 answer
  • The Maple Grove Hotel manager has collected data on the number of rooms occupied each evening for the past 700 nights. The fewes
    8·1 answer
  • Karla is working in Microsoft Excel, and she needs to copy data from one spreadsheet into another. The cells she wants to copy c
    12·1 answer
  • Marshmallow, inc., accounted for an investment in sweet wheat cracker co. using the equity method. during the current year, mars
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!