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2 years ago

Negative inventory investment occurs when companies _ their inventories _.

Business

1 answer:

Sindrei [870]2 years ago

4 0

Answer:

The answer is D. reduce; because sales increase

Explanation:

Negative unplanned inventory is when the business doesn't have sufficient inventory to supply its customers. If customers buy more than expected, inventories unexpectedly decline and unintended inventory investment turns out to have been negative.

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Why should countries specialize in producing goods with which they have a comparative advantage rather than an absolute advantag

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2 years ago

The last four years of returns for a stock are as follows: Year 1 2 3 4 Return −4.5% 28.1% 12.2% 3.7% a. What is the averag

jeyben [28]

Answer:

a. What is the average annual return?

average annual return (mean) = (-4.5% + 28.1% + 12.2% + 3.7%) / 4 = 9.875%

b. What is the variance of the stock's returns?

variance = [(-4.5% - 9.875%)² + (28.1% - 9.875%)² + (12.2% - 9.875%)²) + (3.7% - 9.875%)²] / 4 = (206.64 + 332.15 + 5.41 + 38.13) / 4 = 582.33 / 4 = 145.5825

c. What is the standard deviation of the stock's returns?

standard deviation = √145.5825 = 12.06%

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3 years ago

What is plasticity? How does it apply to development?

yulyashka [42]

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3 years ago

What are some of the advantages and disadvantages of buying a home compared to renting.

nignag [31]

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2 years ago

Duffert Industries has total assets of $1,080,000 and total current liabilities (consisting only of accounts payable and accrual

iris [78.8K]

Answer:

ROIC is 9.26%

ROE is 12.63%

Explanation:

According to the given data we have the following:

Total assets = $1,080,000

Total liabilities = Current liabilities + Debt + Common equity = $1,080,000

D/(D + E) = 0.40

D / ($1,080,000 - 100,000) = 0.40

D = $392,000

Common equity = Total liabilities - Current liabilities - Debt = $1,080,000 - 100,000 - 392,000= $588,000

BEP = 0.15 = EBIT/TA

= EBIT/$1,080,000

Therefore, EBIT = $162,000

In order to calculate the ROIC we would have to make the following calculation:

ROIC = [EBIT(1 – T)]/(D + E) = [$151,200(0.6)]/($392,000 + $588,000) = 9.26%

ROIC is 9.26%

To calculate the ROE we would have to calculate first net income from income statement as follows:

EBIT=$151,200

Less: Interest ($392,000 x 7%) 27,440

EBT= 123,760

Less: Tax 40% 49,504

Net Income= 74,256

Therefore, ROE = NI/E = $74,256/$588,000 = 12.63%

ROE is 12.63%

6 0

3 years ago

Negative inventory investment occurs when companies _____ their inventories _____.

Negative inventory investment occurs when companies _ their inventories _.