1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
poizon [28]
3 years ago
13

A firm has a net profit/pretax profit ratio of .6, a leverage ratio of 1.5, a pretax profit/EBIT of .7, an asset turnover ratio

of 4, a current ratio of 2, and a return-on-sales ratio of 6%. Its ROE is _________.
A. 15.12%
B. 20.16%
C. 30.24%
D. 7.56%
Business
1 answer:
Alenkinab [10]3 years ago
6 0

Answer:

The answer is A.15.12%.

Explanation:

Please find the below for explanation and calculations:

We have EBIT = Pretax profit /0.7 = Net profit / (0.6 x 0.7) = 0.42 x Net Profit

=> Net profit / Sales = Profit margin =  0.42 x EBIT/ Sales = 0.42 x Return-on-sales = 2.52%;

Leverage ratio = Asset/ Equity = 1.5;

Sales / Asset = asset turn over ratio = 4;

Apply the Dupont model we have:

Return on Equity = Leverage ratio x Profit Margin x Leverage ratio = 2.52% x 1.5 x 4 = 15.12%.

Thus, the answer is A. 15.12%.

You might be interested in
Two different ways that a pollen grain can get to the stigma of a pistil
spayn [35]
Wind can blow the pollen to the stigma and carriers such as bee's carry it on them or shake the pollen that will eventually fall of the stigma of a a pistil.
3 0
3 years ago
Which is NOT a crucial question about target markets? Select one:
BlackZzzverrR [31]

Answer:

a. Is there a pain we can alleviate at an attractive price?

7 0
3 years ago
In a free market economy, the market, not the
mylen [45]
In a free market economy, the market, not the government, determines prices. The interaction of producers and consumers determine the price in the market.
8 0
3 years ago
Read 2 more answers
If the diameter of the efferent arterioles leading away from the glomerulus increases (vasodilation) glomerular filtration rate
Phoenix [80]

The given statement exists true.

The diameter of the efferent arterioles in the glomerulus decreased while

  • Net filtration pressure will decrease.
  • The glomerular filtration rate will decrease.
  • Urine output will decrease.
  • Systemic blood pressure will decrease.

<h3>What would happen if the diameter of the efferent arterioles in the glomerulus decreased?</h3>
  • The net pressure of filtration will drop.
  • The rate of glomerular filtration will slow down.
  • Urine production will drop.
  • The level of systemic blood pressure will drop.

The approaching (afferent) arteriole has a larger diameter than the outgoing (efferent) arteriole (by which blood leaves the glomerulus). The difference in diameter between the entering and leaving arterioles causes the blood pressure inside the glomerulus to rise.

The blood components are forced out of the glomerular capillaries by elevated blood pressure. Glomerular filtration is hindered and slows down if the diameter of the efferent arteriole exceeds that of the afferent arteriole. Without the real pressure gradient, it is also impossible to filter out all the components.

To learn more about efferent arterioles refer to:

brainly.com/question/15738991

#SPJ4

5 0
2 years ago
Match each feature with the savings account type.
Marysya12 [62]

<u>1. Basic savings account  </u>

-allows ATM withdrawals  

-allows money transfer  

A savings account is an interest bearing deposit account held at a bank or other monetary foundation that gives an unassuming loan fee. The budgetary organizations may constrain the quantity of withdrawals you can make from your investment account every month. They additionally may charge expenses except if you keep up a specific normal month to month balance in the record. In most cases banks don't give checks investment accounts.  


<u>2. CD </u>

-offers a higher interest rate  

-has a maturity date


A certificate of deposit is a consent to store cash for a settled period with a bank that will pay you premium. You can contribute for three months, a half year, one year or five years. You will get a higher loan fee for the more drawn out time duty. You guarantee to leave all the cash, in addition to the enthusiasm, with the bank for the whole term.  

Basically, you are loaning the bank your cash as an end-result of premium. The CD is a promissory note that the bank issues you.

8 0
3 years ago
Read 2 more answers
Other questions:
  • One of the most common forms of segmenting consumer markets uses characteristics such as age, income, household size, and/or eth
    15·1 answer
  • Computer chips are a normal good. suppose the economy slips into a recession so that income falls. as a​ result, the demand for
    9·1 answer
  • Most "okies" in california finally escaped the deprivation and uncertainty of seasonal farm labor when they
    7·2 answers
  • So im 12 yrs old and i have been asked to babysit my neighbors two boys for 4 hours 5 days a week ( one 4 one 2 yrs old) since i
    15·1 answer
  • Nick bought a music player. The price was $172, and the sales tax rate was 7 percent. How much sales tax did Nick pay when he bo
    10·2 answers
  • A _______ account represents the basic financial position elements of the accounting equation and a _______ account keeps track
    10·1 answer
  • 1. Explaining Why does a natural disaster (drought, flood) in an agricultural
    12·1 answer
  • Which of the following statements about buying centers is true?
    12·1 answer
  • the real risk rate of interest is 2.5% and inflation is expected to be 3% this year and 3.5 during the next three years assume t
    12·1 answer
  • Working all together at the same time, Martha, Susanne and Tammy complete 28 jobs in 2 hours. Tammy works twice as fast as Marth
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!