Answer:
- If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. A 10% PROFIT MARGIN MEANS THAT THE COMPANY EARNED 10 CENTS FOR EVERY DOLLAR OF REVENUE.
- If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. OPERATING PROFIT = GROSS PROFIT - FIXED COSTS, NET PROFIT = OPERATING PROFIT - (INTERESTS AND TAXES). IF TAXES OR INTERESTS INCREASE, NET PROFITS DECREASE
Explanation:
there are several profitability ratios, the most important ones are:
- profit margin = net profit / total revenue
- gross profit margin = gross profit / total revenue
- return on equity = net income / total shareholder equity
- return on assets = net income / total assets
Answer:
D) Credit to Merchandise Inventory for $4,000
Explanation:
Date Account and Explanation Debit ($) Credit ($)
Account Receivable 5,800
Sale 5,800
(Recorded the sale on credit)
Cost of goods sold 4,000
Merchandise Inventory 4,000
(Recorded the cost of goods sold)
Answer and Explanation:
The traditional adversarial relationship with suppliers would change when a firm makes a decision to move to the new suppliers. The firm would focus more on the channels that provides more growth prospects.
Firms seek to build long term relationships with the few suppliers. Such long run relationship makes it more likely to recognize the specific objectives of the acquiring firm and the end customer.
Answer:
WACC is 16.5%
Explanation:
Given:
Weight of equity is 75% or 0.75
Weight of debt is 25% or 0.25
Total value of firm is 1 (0.75 + 0.25)
Cost of debt is 6% or 0.06
Cost of equity is 20% or 0.2
WACC = (weight of debt × cost of debt) + (weight of equity × cost of equity)
= (0.25 × 0.06) + (0.75 × 0.2)
= 0.165 or 16.5%
Therefore WACC is 16.5%
Thousands of developers, lenders, and investors were victims of deflation in commercial real estate beginning in the 1980s and in 2007-2009.
- Private property in the form of land and buildings is referred to as real estate. Real estate comprises all resources on the land, such as water and minerals, and can be used for residential, commercial, or industrial purposes.
- Homes, workplaces, retail establishments, healthcare facilities, farms, and other structures are all instances of real estate. Real estate includes both the undeveloped area outside of our city and the road that takes us there. Due to the fact that the asset is tangible by nature, many individuals like working with and investing in it.
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