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RSB [31]
4 years ago
8

A firm has a positive net worth and is operating its fixed assets at full capacity, if its dividend payout ratio is 100%, and th

e company wants to hold all financial ratios constant, then for any positive growth rate in sales, it will require external financing. Question 6 options:
a) True
b) False
Business
1 answer:
larisa [96]4 years ago
4 0

Answer:

True

Explanation:

Net Worth = Total Assets - Total Liabilities

When it is positive and the company wants that all financial ratios shall remain constant, that is no change then when there is increase in sales then there will be increase in profits.

Accordingly, in case of operating at full capacity the company shall also increase external financing. As with increase in sales debtors or cash will increase, but if the external finance is increased, net worth will remain same, but if it is not increased, net worth will increase.

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Net income was $450,000. Beginning and ending stockholders' equity was $4,000,000 and $4,800,000, respectively. Beginning total
Blababa [14]

Answer:

The correct answer is B. 7.143 %.

Explanation:

Return on assets is a profitability ratio that provides how much profit a company is able to generate from its assets. In other words, return on assets (ROA) measures how efficient a company's management is in generating earnings from their economic resources or assets on their balance sheet. ROA is shown as a percentage, and the higher the number, the more efficient a company's management is at managing its balance sheet to generate income.

The formula to calculate it is given below.

ROA = Net Income/Average total asset * 100

        = 450,000/ 6,300,000*

        = 7.14 %

*= (6,000,000 + 6,300,000)/2

7 0
3 years ago
President bill clinton attempted to protect american firms from foreign competition by placing a government tax on japanese auto
lukranit [14]

C.  A tariff

Tariffs are taxes imposed on imported foreign goods and are designed to encourage people to buy domestic products

6 0
4 years ago
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Which is a factor used in assessing a nation's wealth with the human development index?
ra1l [238]
The figure utilized evaluating a country's riches with the Human Development Index is a country's GDP for each individual. The Human Development Index (HDI) is a composite measurement of future, instruction, and per capita pay markers, which are utilized to rank nations into four levels of human improvement.
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3 years ago
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which of the following terms refers to the comprehensive system for collecting analyzing and communication financial information
givi [52]

Answer:

Accounting

Explanation:

Accounting is a vital part of every business, and it is related to proper collecting, analyzing, managing and communicating financial information. Being such an essential part of businesses, it is always defined and regulated by appropriate entities (state agencies and other regulators).

Accounting is done by an accountant or a bookkeeper, who is the person in charge of generating the needed reports and summarizing the financial data in the proposed manner.

6 0
3 years ago
Imagine an economic debate among five presidential candidates. At the time of the debate, the government announces that the econ
Gnom [1K]

Answer:The classical economist would advocate for free trade, that there should be no artificial influence on the market and that the recession period will be automatically corrected by the forces of demand and supply.

The Keynessian economist will advocate that there should be a direct influence on the market like influence greater demand in the period of recession and reducing the Consumers propensity to consume in a period of expansion.

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3 years ago
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