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Tpy6a [65]
3 years ago
5

Computer Geeks has sales of $618,900, a profit margin of 13.2 percent, a total asset turnover rate of 1.54, and an equity multip

lier of 1.06. What is the return on equity?a. 18.91 percentb. 12.67 percentc. 18.28 percentd. 22.11 percente. 21.55 percent
Business
1 answer:
Natalija [7]3 years ago
8 0

Answer:

21.55 percent

Explanation:

Profit margin = Net Income / Net Sales

Net Income = Profit Margin X Net Sales

Net Income = 13.2% X 618,900 = $81,695

Asset Turnover rate = Net Sales / Average total assets

Average total assets = Net Sales / Asset Turnover rate

Average total assets =  618900 / 1.54 = 401,883

Equity Multiplier = Total assets / shareholder's equity

Shareholder's equity = Total Assets / Equity multiplier

Shareholder's equity = 401,833 /1.06 = $379,135

Return on Equity = net Income / shareholder's equity

Return on Equity = 81,695 / 379135 = 0.2155 = 21.55%

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Answer:

A) $800,000

Explanation:

Since the current reserve ratio is 20%, and the bank has no excess reserves, then the maximum it can lend if it receives $1 is $800,000.

The bank has currently $50 million in deposits and $10 million in reserves ($6 million in cash and $4 million in the Fed), so its reserves are exactly 20% of its total deposits. So if any new deposits are received, the bank will have to keep as reserves 20% of it (= $1,000,000 x 20% = $200,000).

This type of banking system is called the fractional banking system because banks are only required to keep a fraction of the money they receive as deposits and they can lend the rest to other clients.

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2 years ago
What are the opportunities of an entrepreneur
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Opportunities of an entrepreneur:
• involves the sale or lease of any product, service, equipment that will enable the purchaser-licensee to begin a business.
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8 0
3 years ago
Two workers have the job of placing plastic labels on packages before the packages are shipped out. The first worker can place 1
monitta

Answer:

The correct answer is: The second worker.

Explanation:

Productivity is an economic term describing the relationship between outputs as compared to inputs needed to produce those outputs. It is a measure of efficiency. Typically inputs are raw materials, labor, and capital assets. Outputs are generally expressed as either revenue or total units of finished goods.

In the example, a form to measure each worker's productivity is comparing how many plastic labels they can place per hour. Thus:

  • Worker 1: <em>1000 per 1/2 hour (30 minutes) </em>
  • Worker 1: <em>2000 per 1 hour  </em>

  • Worker 2: <em>850 per 1/3 hour (20 minutes)</em>
  • Worker 2: <em>2550 per 1 hour </em>

Then, the second worker is more productive.

3 0
3 years ago
What is the correct order that the four parts of a cover letter should appear in? a. Introduction, Heading, Argument, Closing b.
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I’m thinking (a., because im pretty sure you need to have the heading before make an argument.
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2 years ago
Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective b
ELEN [110]

Explanation:

<u>5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?</u>

Personal selling is a traditional sales method that consists of a more personalized service and a more efficient product promotion compared to other forms of promotion. This is due to the fact that, in a personal sale, there is the direct influence of the seller to explain the functionalities and characteristics of a product, which is usually done using sales and negotiation techniques that directly influence the buyer to feel the need for the product that is being promoted. The advantages of personal selling as opposed to other types of promotion, is the possibility of reducing the time and effort of purchase, since in this type of sale, the seller goes to the customer to offer the product.

<u></u>

<u>5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?</u>

The biggest advantages of personal selling for the company that sells a product is the greater possibility of having a closed purchase, since the potential sales are made with your potential customers. There is also a decrease with other types of product promotion, which can be costly, such as advertising an advertisement on television, and which may not generate the expected goal of increasing product sales.

The advantages for the person or company that buys the product is the possibility of knowing and seeing the functionality of the product before purchasing and the possibility of negotiating and providing meaningful feedback, which can influence the seller to make the sales proposal more flexible by making it more attractive to the customer. Personal selling also creates value for the customer, as the service is personalized, based on their profile, characteristics, desires and needs.

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3 years ago
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