Answer:
8.32%
Explanation:
The computation of cost reduction improve the ROE is shown below:-
For computing the increase in ROE first we need to follow some steps which is here below:-
Debt = capital × Debt
= $250,000 × 37.5%
= $93,750
Equity = Assets - Debt
= $250,000 - $93,750
= $156,250
New ROE = New Net income ÷ Equity
= $33,000 ÷ $156,250
= 21.12%
Old ROE = Old Net income ÷ Equity
= $20,000 ÷ $156,250
= 12.8%
Increase in ROE = New ROE- Old ROE
= 21.12% - 12.8%
= 8.32%
Answer:
Option (d) is correct.
Explanation:
Given that,
Inventory sold to Alberta, Inc. on account = $5,800
Cost of goods sold = $4,000
The journal entries are as follows:
(i) On October 1,
Accounts receivable A/c Dr. $5,800
To sales A/c $5,800
(To record the credit sale of inventory)
(ii) On October 1,
Cost of goods sold A/c Dr. $4,000
To Merchandise inventory A/c $4,000
(To record the cost of goods sold)
Answer:
$1,384.24
Explanation:
The computation of the expected terminal enterprise value in year 2 is shown below:
Terminal value in year 2= Free cash flows for the year 3 ÷ (Capitalization Rate - growth rate)
= $88 million × (1 + 10%) × (1 + 10%) × (1 + 4%) ÷ (12% - 4%)
= $110.7392 ÷ 8%
= $1,384.24
Hence, the expected terminal enterprise value in year 2 is $1,384.24
We simply applied the above formula so that the approximate value could arrive
Answer:
R(pref) = 12.73%
Explanation:
Hi, there is several things here that will only get you confuse, first, there is no use for the market rate of return, we need to find how much issuing this preferred stocks costs to the company.
Second, preferred stocks are not tax deductable therefore there is no point into mentioning the tax-rate of the company.
i think it should be relevant for this type of exercises to mention that a "7% preferred stock outstanding" means that the company is paying 7% of $100 as a fixed payment for every preferred stock.
For all of the above, the answer to this question can be found by using the following formula.
Best of luck.
The science that studies trends and changes in human populations is called demography. Thus, option C is correct.
<h3>What is the population? </h3>
The population can be defined as the number of people present in a particular region. The region can be locality, city, country, or the world.
The quantitative study of human inhabitants is called demography. Demographers examine the range, migration, and composition of people using census data, surveys, and statistical models. It also includes the death and birth and mortality ratio. Therefore, option C is the correct option.
Learn more about population, here:
brainly.com/question/16138725
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