Answer:
Explanation:
Net Income = 20m
Sales = 100m
Debt-equity ration = 40%
Asset turnover = 0.60
A)
Profit Margin = Net Income / Sales = $20 million / $100 million = 20%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%
B)
Debt-equity ratio = 60%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%
As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)
Answer:
Option A is riskier
Explanation:
In this question, we want to know which of the two stocks is riskier.
To answer this, we can use the standard deviation of returns as a risk measure.
For a security with a big value for standard deviation of returns, its per period returns are wider making its range per day large.
Hence, what this means is that out of the two stocks, the one with a larger value of standard deviation of returns will guarantee more risk as it is expected to give a better ranges of price
Now back to the values in the question, we can see that the standard deviation of returns of stock A is greater than that of stock B which this makes it a more risky option
It already does affect the workplace.
The community arrangement of a newspaper company publication that was organized in a coordinated way by editors, editorial assistants and reporters, this arrangement will align with the ideas brought by Mary Parket Follet.
<h3 /><h3>Mary Parker Follet Theory</h3>
The American author became known as the "Management Prophet" because her theory was based on a broader idea of organizational democracy, going beyond the concepts of economic man, to develop concepts whose focus was human relations.
Therefore, Mary Parker Follet's theory is based on the development of man as a social and cooperative being, which develops from his relationships and behavior patterns, being contrary to Taylorism and based on the appreciation of each individual and integration of work.
Find out more information about Mary Parker Follet here:
brainly.com/question/26312475
