<u>Calculation of Increase in Leverage ratio to achieve 20% ROE:</u>
The current ROE is given 15% and operating profit margin and asset turnover ratio are 8% and 1.25, respectively.
The formula for ROE is as follows:
ROE = Operating profit margin * Asset turnover ratio * Leverage ratio
We can say that :
Leverage ratio = ROE / (Operating profit margin * Asset turnover ratio)
Hence Current Leverage Ratio = 15% / (8%*1.25) = 1.5 times
Now we are asked to get ROE 20% with operating profit margin and asset turnover ratio at 8% and 1.25, respectively.
Hence,
Required Leverage Ratio = 20% / (8%*1.25) = 2 times
Hence Leverage Ratio should Increase by (2-1.5)<u> 0.5 times</u> to get the ROE of 20%
<h2>Hand-holding & Appreciating the contribution is the best method of motivation.</h2>
Explanation:
Both hand-holding & appreciation of work is really priceless and you need not spend money but you can get major profit.
1. Hand-holding: As a team-lead/ supervisor, it is his responsibility to motivate his team by hand-holding on need. The team must be ready to help each other, when problem occurs for some one, others must lift him/her to reach the success.
2. Appreciation: The best support an employee can get. This is the success factors of many employees and many organization. Recognizing and appreciating one's work is the best reward.
Answer: D. Internalizing the externality
Explanation: A policy that succeeds in giving buyers and sellers in a market an incentive to taken into account the external effects of their action in consumption and production is call " internalizing externalities ".
Internalizing the externality simply means shifting the burden, or costs, from a negative externality, such as environmental degradation, pollution or traffic congestion, from external to internal. This is done by government through taxes, tolls,property rights and government subsidies.
Answer:
Gentrification can cause low rents, immigration, and increasing population.
Explanation:
Answer:
whether you have good reasons for choosing a particular car.
Explanation:
When deciding which car to buy, it is necessary for an individual to adopt critical thinking in order to decide what are the reasons that will lead him to choose a particular car.
Critical thinking will help to identify whether the features and benefits of a car model are aligned with issues relevant to the consumer, such as price, costs, design, style, etc.
The consumer when deciding to buy something goes through different stages in the purchase decision process, which is identifying needs, searching for information on solutions to their problem, analyzing the available options and purchasing. By following these steps, it is possible to develop critical thinking that will lead the consumer to make an accurate and effective purchase to satisfy their needs and desires.