The Profit margin that must be achieved is 12.74%.
<h3 /><h3>Profit margin </h3>
First step
Return on equity= Growth rate /(1 + Growth rate) × Retention ratio
Return on equity=12.8% / (1 + 12.8%) × (100%-40%)
Return on equity= 0.128/(1 +0.128) × 0.60
Return on equity= 0.128/1.128 × 0.60
Return on equity= 0.128/0.6768×100
Return on equity= 18.91%
Second step
Now the profit margin is:
Profit margin= ROE / Asset turnover × Equity Multiplier
Profit margin= 18.91% / {(1/.94) × 1.4}
Profit margin= 0.1891 / 1.06 × 1.4
Profit margin= 12.74%
Inconclusion the Profit margin that must be achieved is 12.74%.
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Answer:
how to create value for customers ???
Explanation:
The American Marketing Association, the official organization for academic and professional marketers, defines marketing as:
"Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives
"
Marking is all about Understanding What Customers Value and how to provide it to them.
Answer:
The correct answers are:
B.) in value.
B.) Tariffs and import quotas generally reduce economic welfare.
Explanation:
In the first case, both economists disagree on a value issue.
One of them believes that government programs cause more harm than good, while the other believes that it helps the less fortunate, this is an example that <u>the difference is in value, over whom the government helps.
</u>
Despite their differences, the proposition in wich this two economists are most likely to agree is Tariffs and import quotas generally reduce economic welfare.
Because both believe, at some point, that government participation in the economy is ineffective.
One believes that it is totally inefficient and another believes that it is only partially, therefore <u>both would agree on this.</u>
In a simple, closed economy (no government or foreign sector), if disposable income increases by $500, and consumption increases by $450, then savings increases by 0.9
Typically, a closed economy is one where no trade or other financial transactions are conducted with any other nations. That indicates that no exports leave the country and no imports enter it. A closed economy aims for total self-sufficiency, giving domestic consumers everything they require from within its own borders. Although some economies are more closed than others, closed economies are more of a theoretical idea in the connected world of today.
Governments may use quotas, subsidies, and tariffs to shield a particular sector or industry from foreign competition even in nations with relatively open economies—a practice known as protectionism.
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Answer:
$0.82
Explanation:
Average Cost =Total Production Cost÷Number of Units Produced
Since there will be a 35% markup
Retail Price=135% of 0.61
= 1.35X 0.61=$0.82