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
Dominik [7]
3 years ago
12

SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity

multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) answer as a percent rounded to 2 decimal places, e.g., 32.16.) answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your c. What is the net income? (Do not round intermediate calculations and round your a. Equity multiplier b.Return on equity c. Net income 353,400.00
Business
1 answer:
PtichkaEL [24]3 years ago
7 0

Answer:

(i) 1.57

(ii) 12.40%

(iii) $76,898.60

Explanation:

Debt-equity ratio = debt/equity

Hence debt= 0.57 equity

= (0.57 × 620000)

= $353,400

Total assets = debt + equity

                     = (353400+620000)

                    = $973400

1. Equity multiplier = Total assets ÷ Equity

                               = $973,400 ÷ 620,000

                               = 1.57

3.  ROA = net income ÷ Total assets

net income = ($973,400 × 0.079)

                    = $76,898.60

2. ROE = net income ÷ Total equity

= $76,898.60 ÷ 620,000

= 12.40%(Approx).

You might be interested in
Where is Nova City Islamabad located? Also is it under progress or has the development been completed?
elena55 [62]

Answer:

Nova City is a prime location in Islamabad

Explanation:

It is a few kilometers away from the New Islamabad International Airport.  It is right next to CPEC Ring Road Interchange and is at the center of twin cities.

The project is not yet launched, but the development of the infrastructure has started that will attract the investors towards the project.

7 0
2 years ago
Concord Corporationreported the following year-end information: beginning work in process inventory, $250000 cost of goods manuf
anastassius [24]

Answer:

$228,000

Explanation:

Beginning work in process inventory, $250000

Cost of goods manufactured, $866000

Beginning finished goods inventory, $292000

Ending work in process inventory, $270000

Ending finished goods inventory, $314000

Cost of Goods Sold = Beginning work in process inventory + Beginning finished goods inventory - Ending finished goods inventory, $314000

Cost of Goods Sold = $250,000 + $292,000 - $314,000

Cost of Goods Sold = 228,000

7 0
3 years ago
The head of accounting at delores inc. is computing a value that represents the company's financial performance for the previous
Nesterboy [21]
<span> In this scenario, the mean as a measure of central tendency will be least effective as an accurate representation of financial performance.
</span><span>The mean is a measure of central tendency that is the average for a sample.
</span><span>In this specific case the mean is not effective measure because there is a huge difference in the financial performance in the last month compared to the previous months.So the mean would not give the real picture.</span>
5 0
3 years ago
Which tool of monetary policy allows the Federal Reserve to decrease the
mihalych1998 [28]
It's D. Increasing the reserve requirement on banks
6 0
2 years ago
Read 2 more answers
Suppose you're pitching in a softball game and facing a good hitter. you remember that you struck her out with a fastball the la
WARRIOR [948]
<span>When you make this decision, you are primarily using your critical thinking. You are using information you were given in the past and applying it to future events.</span>
8 0
2 years ago
Other questions:
  • According to the preprinted language what type of deed is to be used at closing to convey the title to the real property that is
    11·1 answer
  • Hard skills are teachable abilities like reading, solving equations, and using computer software. True or False
    5·2 answers
  • On April 1, 2020, Vaughn Company assigns $524,600 of its accounts receivable to the Third National Bank as collateral for a $336
    15·1 answer
  • Name at least four factors that a lender investigates when considering whether you are creditworthy.
    5·2 answers
  • On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On
    11·1 answer
  • Peggy, a foreman at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours fo
    7·1 answer
  • Which managerial function involves setting goals, establishing a strategy to pursue those goals, and forecasting future threats
    7·1 answer
  • Consumer sovereignty means that legislation now protects the rights of consumers to dispose of their incomes as they see fit.
    10·1 answer
  • Jack's Lumber Yard receives 8,000 large trees each period that it subsequently processes into rough logs by stripping off the tr
    5·1 answer
  • The owners of Carpo Inc., a watch company, also own a steel company and a leather goods manufacturing company. This relieves the
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!