S= (1+r)c. find c if s=174 and R<br> =455

A firm has a profit margin of 5.1 percent, a total asset turnover of 1.84, and a return on equity of 16.2 percent. What is the d

Jet001 [13]

Answer:

Debt / Equity = 0.72649 : 1 or 72.649%

Explanation:

The ROE or return on equity can be calculated using the Du Pont equation. It breaks the ROE into three components. The formula for ROE under Du Pont is,

ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Shareholder's equity

or

ROE = Net Income / Total equity

Assuming that sales is $100.

Net Income = 100 * 0.051 = 5.1

Total Assets = 100 / 1.84

Total Assets = 54.35

0.162 = 5.1 / Total equity

Total Equity = 5.1 / 0.162

Total Equity = 31.48

We know that Assets = Debt + Equity

So,

54.35 = Debt + 31.48

Debt = 54.35 - 31.48

Debt = 22.87

Debt / Equity = 22.87 / 31.48

Debt / Equity = 0.72649 : 1 or 72.649%

6 0

2 years ago

Fern Co. has net income, before taxes, of $200,000, including $20,000 interest revenue from municipal bonds and $10,000 paid for

exis [7]

Answer:

Effective tax rate =28.50 %

Explanation:

given data

Net Income before taxes = $2,00,000

Interest revenue = $20,000

Life insurance Premium = $10,000

tax rate = 30%

to find out

Fern's effective tax rate

solution

first we get here Taxable Income that is express as

Taxable Income = Net Income before taxes + Life insurance Premium - Interest revenue ........................1

put here value we get

Taxable Income = $2,00,000 + $10,000 - $20,000

Taxable Income = $190000

so

Income tax Liability will be

Income tax Liability = Taxable Income × Tax rate .....................2

Income tax Liability = $190000 × 30%

so Effective tax rate will be

Effective tax rate = $\frac{Income\ tax\ Liability}{Net\ Income}$

Effective tax rate = $\frac{57000}{200000}$

Effective tax rate =28.50 %

3 0

2 years ago

Good Firm is highly profitable and will grow rapidly in the future. Bad Firm faces the same risks but barely makes a profit and

RideAnS [48]

Answer: B.both stocks are equally good investments

Explanation:

The options are;

A.it is better to buy shares in Bad Firm

B.both stocks are equally good investments

C.it is better to buy shares in Good Firm

D.both stock prices react equally to the same information

From the question, we are informed that Good Firm is highly profitable and will grow rapidly in the future while Bad Firm faces the same risks but barely makes a profit and will not grow at all. It should be noted that In an efficient market, both stocks are equally good investments.

3 0

2 years ago

General Steel wants to install technology into its logistics management system. This technology will enable General Steel to gai

kati45 [8]

Answer: B. radio frequency identification.

Explanation: Radio Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object, providing a unique identifier for an object. RFID Technology is used in many industries and in a wide variety of applications as it can deliver a number of benefits fo item-revelations.

RFID is used for item level tagging in retail stores. In addition to inventory control, this provides both protection against theft by customers (shoplifting) and employees ("shrinkage") by using electronic self-checkoutillance (EAS), and a self checkout process for customers.

5 0

3 years ago

Read 2 more answers

What section of your resume includes your GPA?

Ipatiy [6.2K]

What do you mean do you have a better example..? But usually some jobs don’t ask

4 0

2 years ago

S= (1+r)c. find c if s=174 and R =455