Braam fire prevention corp. has a profit margin of 9.70 percent, total asset turnover of 1.52, and roe of 18.58 percent. The firm's debt-equity ratio will be 0.91.
<h3>
What is debt- equity ratio?</h3>
A phrase used in accounting to describe the capital structure of a company is the debt-equity ratio. This ratio is computed specifically by dividing a company's total debt by its entire equity.
<h3>monetary ratios</h3>
- Financial ratios are measurements that analysts use to assess business performance and to compare those ratios with other companies in the same industry. They are evaluated according to the firm's financial statements.
- The liquidity ratios, solvency ratios, profitability ratios, and market outlook ratios are the common classes into which the financial ratios can be divided. Each lesson will highlight a different aspect of the company.
- Before performing their analysis, analysts should, however, evaluate the completeness and transparency of the provided financial statements. The financial statements could be manipulated by some internal investors for personal gain.
ROE = profit margin × asset turnover × equity multiplier
18.58% = 9.70% × 1.52 × equity multiplier
equity multiplier = 1.91
Then debt-equity ratio is calculated as:
debt-equity ratio = equity multiplier - 1
debt-equity ratio = 1.91 - 1
debt-equity ratio = 0.91
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When companies join together to try to control prices or eliminate competition so that they exclusively benefit, it is called collusion.
Collusion occurs in oligopoly market, when oligopoly firms make joint decisions, and act as if they were a single firm to control prices or eliminate competition. Collusion requires an agreement between cooperating firms, the agreement can be either explicit or implicit, in order to restrict output and achieve the monopoly price.
So this causes the firms to be interdependent, as the profit levels of each firm depend on the firm’s own decisions and the decisions of all other firms in the industry.
Hence, an example of illegal collusion is a secret agreement between firms to fix prices.
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Answer: automatic stabilizers
Explanation:
Automatic stabilizers are the provisions in the law that automatically increase government spending or decrease taxes when real output declines.
It should be noted that automatic stabilizers can be used to reduce recession impact on people by helping them to survive even when there is a job loss.
Answer:
$26000
Explanation:
Bob deposit $285 into a bank account earning 0.39% simple interest per month.
The interest on this money for the 6 year period will first be obtained and then added to the total amount Bob deposited during this period.
Bob deposited a total of 285×72=$20500 (72 is obtained by converting 6 years to months i.e. 6×12)
The interest during this period =p×r×t
Where p=$285 (amount Bob saves per month)
r=.39/100 or 0.039 intrest rate earned per month
t=6 years or 72 months
Interes accred for 6 years= 285×0.039×72=$80
Total amount Bob will have at the end of 6 years =80+20520=$26000
