Answer:
C) Return on equity will increase dramatically
Explanation:
Return on equity (ROE) is a profitability ratio and it is calculated using the following formula:
ROE = net income/ shareholders' equity
If shareholders' equity is reduced by 50%, and the net income remains stable, then ROE should double.
For example, net profit = $100, shareholders' equity = $1,000
ROE = $100 / $1,000 = 0.10
If shareholders' equity is reduced by 50%, then the new ROE will be:
ROE = $100 / $500 = 0.20
Strategically, a company may phase out or sell an SBU this is known as DIVESTMENT.
Divestment is the process of selling an asset to obtain financial goals. Divesting involves a company selling its assets to improve its value and obtain higher efficiency.
Answer:
reviews and if manage hold themselves to a high standard of ethical behavior how do managers deal with overstaffing problems teaching employees better time management/.
Explanation:
Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges is: C. $989,020.
<h3>Cost of good sold</h3>
Using this formula
Cost of goods sold=Goods available for sale-Inventory balance
Where:
Goods available for sale=$1,074,450
Inventory balance=$85,430
Let plug in the formula
Cost of good sold=$1,074,450-$85,430
Cost of good sold=$989,020
Inconclusion Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges is: C. $989,020.
Learn more about Cost of good sold here:brainly.com/question/24561653
Answer and Explanation:
The computation of the total security and medicare tax is shown below:
Here we assume the social security and medicare tax is 12.4% and 2.9% respectively
So, first we compute the total earnings which is
= $1,020 × 13 weeks
= $13,260
Now the taxes are
= $13,260 × 12.4% + $13,260 × 2.9%
= $1,644.24 + $384.54
= $2,028.78
