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3 years ago

8

Which of the following is the LEAST likely explanation for a firm's high ROE? A. The firm is growing. B. The firm is able to fin

d investment opportunities that are very profitable. C. The firm has very efficient use of its assets. D. The firm enjoys high sales margins.

1 answer:

Pani-rosa [81]3 years ago

6 0

Answer:

A. The firm is growing.

Explanation:

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If a casket cost $1,000.00 wholesale, and the funeral home's fixed multiple was 5, what would the selling price of that casket b

omeli [17]

If a casket cost $1,000.00 wholesale, and the funeral home's fixed multiple was 5, then $500 would be the selling price of that casket.

The selling price is the initial label that the salesperson puts on the product, and the asking price is the price at which the product will eventually be sold. Determine the total cost of all purchased units. Divide the total cost by the number of units purchased to get the cost price. Use the selling price formula to calculate the final price: selling price = cost + profit margin.

Companies should be able to bear all the costs of their products, pay their operating costs, and make a profit. Customers compare products based on retail prices and decide how to allocate their money. Businesses rely on selling prices to determine revenue from sales and achieve business goals.

Learn more about the selling price here: brainly.com/question/1153322

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5 0

2 years ago

Sound Systems (SS) has 200,000 shares of common stock outstanding at a market price of $37 a share. SS recently paid an annual d

7nadin3 [17]

Answer:

the weighted average cost of capital is 6.31 %

Explanation:

Weighted Average Cost of Capital (WACC) is the<em> return</em> required by the providers of long term permanent source of capital to the firm.

WACC = Ke × (E/V) + Kp × (P/V) + Kd × (D/V)

Ke = Cost of equity

= $1.20 / $37.00 + 0.04

= 0.0724 or 7.24 %

E/V = Weight of Equity

= (200,000 × $37) ÷ (200,000 × $37 + 4,500 × $1,000 × 99%)

= $7,400,000 ÷ ($7,400,000 + $4,455,000)

= 62.42 %

Kd = Cost of Debt

= Interest × (1 - tax rate)

= 6.70 % × (1 - 0.34)

= 4.42 %

D/V = Weight of Debt

= (4,500 × $1,000 × 99%) ÷ (200,000 × $37 + 4,500 × $1,000 × 99%)

= $4,455,000 ÷ ($7,400,000 + $4,455,000)

= 37.28 %

Therefore,

WACC = 7.24 % × 62.42 % + 4.42 % × 37.28 %

= 6.31 %

8 0

3 years ago

In the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she a. should exit

icang [17]

Answer:

c. will earn zero economic profits but positive accounting profits.

Explanation:

In a competitive industry, there are many buyers and sellers of homogenous goods and services. There are also low barriers to entry and exit of firms. In the short run, if a firm is earning economic profit, new firms enter into the industry and drive economic profit to zero. Thus, in the long run, a firm only earns accounting profit.

Accounting profit is total revenue less total cost or explicit cost.

Economic profit is accounting profit less implicit cost or opportunity cost.

I hope my answer helps you

3 0

3 years ago

Read 2 more answers

Why do employees who participate in planning change efforts tend to have more positive opinions about the change

dusya [7]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) They have the opportunity to reject the proposed change.

b) They will have the opportunity to know more than others about the change.

c) They will be able to convince customers the change was the right thing to do.

d) They will feel a sense of ownership of planned change and are more likely to be on board.

And the correct answer is the option D: They will feel a sense of ownership of planned change and are more likely to be on board.

Explanation:

To begin with, it will be more acceptable for an employee of a company or a member of a group to agree with a change if that person was involved in the planning of the change. That means that he will feel that he is part of the solution and therefore part of the team because his ideas were listened and maybe he contributed with something. That is why that members who participate in the planning of a change will always be more positive about the final outcome due to the fact that they were there during the process of deciding that outcome and that will make them feel integrity related to the work and to the team as well.

3 0

3 years ago

Shelia was abducted from a school football field, taken to a bank, and forced to withdraw money from an atm machine. afterward,

Law Incorporation [45]

The correct answer is
A. Football Field

The reason for this is because the football field is the place where she was abducted. Although other crimes were committed the beginning of the crime starts with her abduction.

4 0

3 years ago