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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%.

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Which of the following is an argument for free trade?
ipn [44]

i think it's" B" , from the explanation!

Explanation:

Free trade increases the size of the economy as a whole. It allows goods and services to be produced more efficiently. ... Free trade is good for consumers. It reduces prices by eliminating tariffs and increasing competition. Greater competition is also likely to improve quality and choice.

4 0
3 years ago
Peterson Photoshop sold $1,300 in gift cards on a special promotion on October 15, 2021, and sold $1,950 in gift cards on anothe
Anastaziya [24]

Answer:

$1,300

Explanation:

Given that,

On November 15, 2021

sold gift cards = $1,950

Of the gift cards sold in November,

Redeemed in November = $195

Redeemed in December = $455

Therefore, the deferred revenue is as follows

= November sales - Redemptions

=  November sales - (Redeemed in November + Redeemed in December)

= $1,950 - ($195 + $455)

= $1,950 - $650

= $1,300

4 0
3 years ago
Health Wise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants He
NeX [460]

Answer:B) Copyright

Explanation:

A copyright is a legal protection that gives the original inventors of a product the exclusive right to manufacture, sell ,use a product for a limited time.

A copyright prevents others from duplicating a product during the years the copyright is active.

A trademark is a logo of a brand , product or company.

Patent is a legal right given to an inventor that prevents others from using ,duplicating or selling the invention for a period of time usually twenty years.

A warranty is an agreement between a buyer and a seller where the seller agrees to replace or make repairs when certain damages occur to a product within a specified period.

Treaty is a written agreement agreed to by countries and international organisations.

3 0
3 years ago
Synovec Corporation is expected to pay the following dividends over the next four years: $6.60, $17.60, $22.60, and $4.40. After
Alexandra [31]

Answer: $245

Explanation:

If the required return on the stock is 7 percent, the current share price would be calculated as:

= 6.60/1.07 + 17.60/1.07^2 + 22.60/1.07^3 + 4.40/1.07^4 + [(4.4 × 1.0525) / (7%-5.25%)] / 1.07^4

= $245.23

= $245 approximately

Therefore, the current share price will be $245

3 0
3 years ago
Richard goes on a vacation to Orlando, Florida and stays in a hotel there. While at the hotel, he accidentally leaves his guitar
Serjik [45]

Answer:

mislaid property

Explanation:

Based on the information provided within the question it can be said that the guitar represents mislaid property. This term refers to something that was left in a specific place with the intention of retrieving it later but then forgotten. Which is exactly what happened with the guitar, as Richard left it in the hotel for safe keeping but forgot to take it when he left the hotel for good.

5 0
3 years ago
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