That is true, hope that helps !
Answer: Option C
Explanation: As per the leader- member exchange model, the relationship between the senior and subordinate is based on the honesty and truth and extends beyond the employment relations.
This model is often used by the organisations that gives high importance to the employees and tries to maintain healthy relationships and positive environment within the workplace.
Hence from the above we can conclude that the correct option is C .
Answer:
a) 28%
b) 56%
Explanation:
Data provided in the question:
Operating profit margin = 7%
Asset turnover ratio = 4
Now,
a) ROA = Profit margin × Asset turnover ratio
= 7% × 4
= 28%
b) Given:
Debt-equity ratio = 1
Interest payments = $8,200
Taxes = $8,200
EBIT = $21,000
Now,
Total assets = Net income ÷ ROA
Also,
Net income = EBIT - tax - interest
= $21,000 - $8,200 - $8,200
= $4,600
Thus,
Total assets = $4,600 ÷ 28%
= $16428.57
also,
Total assets = Debt + Equity
or
Total assets = Equity × (
)
or
$16428.57 = Equity × ( 1 + 1 )
or
=> Equity = $8214.28
Therefore,
ROE = Net income ÷ Equity
= $4,600 ÷ $8214.28
= 56%
Answer:
b. cannot test his theory because his observations violate the ceteris paribus assumption
Explanation:
As per the law of supply, when price of an input rises, quantity supplied of a good falls, keeping other factors affecting supply as constant (ceteris paribus).
Leather and Shoes are complimentary goods in the sense that leather serves as an input for the product i.e shoes. So if the price of leather rises, production of shoes would fall, keeping other factors constant.
When the price of an input rises, the quantity supplied falls, keeping other factors affecting supply as constant.
In the given case, the price of inputs has increased and yet the production of shoes has increased owing to an advancement in the technology. Technology is a different determinant of quantity supplied and considered as an other factor affecting supply.
First, you have to do $3000 times .07 (decimal form of 7%). That equals Assuming that the interest is 7% <em>each month,</em> your interest would be $210 a month. Then you would times that by 6 months. That would be $1260.
