Answer:
$1.25
Explanation:
According to the quantity theory of money
money supply x velocity = real gdp x price
7 x 60 = 336 x p
p -1.25
velocity measures how fast money changes hand in the economy
real GDP is gdp adjusted for inflation
Answer:
If the firm uses less leverage, its ROE will decrease since the cost of equity is much higher than the cost of debt. If all debt is eliminated, then ROE will decrease to 7.764% from 10.83%.
Explanation:
net income = $9.75 million
capital structure:
- $90 million equity
- $60 million debt
interest rate = 4% and tax rate = 21%
current return on equity (ROE) = $9.75 / $90 = 10.83%
current return of assets (ROA) = $9.75 / $150 = 6.5%
cost of debt = 4% x (1 - 21%) = 3.16%
if the company issues more equity to lower debt to 0, then:
net income = $9.75 + [$60 million x 4% x (1 - 21%)] = $9.75 + $1.896 = $11.646 million
return on equity (ROE) = $11.646 / $150 = 7.764%
return of assets (ROA) = $11.646 / $150 = 7.764%
Answer:
92.86%
Explanation:
Debt-to-income ratio is a comparison or personal debts against income. It is used to assess an individual ability to accommodate more debts.
The formula for for calculating Debt to income is
Debt to income is <u> Total of Monthly Debt Payments </u>
Gross Monthly Income
For Affan, Total debts are $450 + $375 + $50+ $100 =$ 975
Gross income is not given , we use net income which is $1,050
Debt to income ration = $975/$1050
= 0.92857 x 100
= 92.86%
Answer:
Provide protective mechanisms.
Explanation:
The five principles used to create a more ethical culture at work are:
- Be a role model and be visible.
- Communicate ethical expectations.
- Offer ethics training.
- Visibly reward ethical acts and punish unethical ones.
- Provide protective mechanisms: he company needs to provide some type of formal protective mechanism for employees who want to report unethical behavior and may fear getting in trouble for doing so. This way the employee can remain anonymous and will feel conformable with disclosing the information.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Direct materials used $5,000
Direct Labor 7,000
Total Factory overhead 5,100
Beginning work in process 3,000
Ending work in process 4,000
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 3,000 + 5,000 + 7,000 + 5,100 - 4,000= $16,100
