Answer:
a) DuPont analysis for Johnson International
2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%
2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%
2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%
b) DuPont analysis for industry averages
2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%
2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%
2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%
c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.
Explanation:
The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:
R
OE = net pro
fit margin x total assets turnover x financial leverage
Answer:
c. best utilization of scarce resources
Explanation:
Economics is the study of how society uses its scarce resources to meet the insatiable needs of its members. Resources are the inputs that a county uses to produce goods and services. They are the four factors of production.
Human needs are unlimited and cannot be satisfied with the available scarce resources, necessitating human beings to make choices. Economics will involve analyzing production decisions amidst limited resources. It also analyses how the goods produced are distributed to satisfy the different needs and wants of its members.
Answer:
A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds
Explanation:
$936.41 is the new price of the bond.
<u>Explanation:</u>
<u>New price of the bond after using the duration is calculated as follows:</u>
Purchase date = 01 june 2016, Maturity date = 01 june 2024, frequency = 1
Face value = $10000, Annual coupon rate = 5.20 percent, Yield to maturity = 6.40 percent,
NPER = 6.688257877
PMT = $52.00
New price of the bond = $936.41 ( rounded to two decimal places)
Note: I have used an excel formula so as to calculate the new price of the bond.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
