1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
maria [59]
4 years ago
12

Ziff Corp. is considering a project that will require $700,000 in assets. The project will be financed with 100% equity. The com

pany faces a tax rate of 30%. what will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $160,000? a. 17.6% b. 11.2% c. 16.0% d. 16.8%
Business
1 answer:
oksano4ka [1.4K]4 years ago
8 0

Answer:

c. 16%

Explanation:

The formula and the computation of the return on equity is shown below:

Return on Equity = Net income ÷ Equity  

where,

Net income = (1 - tax rate) × Earning before Interest and taxes

= (1 - 0.30) × $160,000

= $112,000

And, the equity is $700,000 × 100% = $700,000

So, the return on equity is

= $112,000 ÷ $700,000

= 16%

You might be interested in
When Unraveling the Unit Circle the sine function creates a relationship between the _________and the ________ starting at 0 rad
notka56 [123]

Answer:

Vertical distance

y-axis

Horizontal distance

x-axis

where n are integers

Explanation:

The relationship between x-axis and y-axis is determined by cosine function. The sine and cosine functions have a domain of all real numbers. These distances are determined by the vertical distance ratio.

3 0
3 years ago
Determine whether each scenario is an example of tax avoidance or tax evasion. Andrea keeps a record of all her business-related
Brums [2.3K]

Answer:

1. Tax avoidance

2.Tax avoidance

3.Tax evasion

Explanation:

Tax avoidance refers to a legal way of reducing one's tax liability through lawful deductions. Ways to reduce tax liabilities are; capitalizing on tax advantage retirement accounts, liasing with tax advisor on the legal way for tax avoidance. Tax avoidance is however legal.

Examples of tax avoidance are;

1. Andrea keeps a record of all her business related expenses.

2. Daniel claims the amount of interest paid for his mortgage as tax deductions.

Tax evasion is a deliberate attempt by a tax payer to avoid payment of tax liability. It is a fraudulent action by a tax payer to wilfully evade tax in an illegal manner. In tax evasion, income is concealed to tax authorities inorder to evade tax payment which is a criminal offence. It is to be noted that tax evasion is illegal in the eye of the law.

Example of tax evasion is ;

3. Christian did not report the tips he earned on his tax return.

7 0
3 years ago
MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are
vagabundo [1.1K]

Answer:

D. cascade down

Explanation:

Based on the information provided within the question it seems that this is an example of MBO working as objectives cascade down through the organization. This can be said since the organizational goals/objectives start at the top of the organization (executives and managers) and move down through the organizational hierarchy to the lower level employees. Thus cascading down.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Mary's Baskets Company expects to manufacture and sell 24 comma 000 baskets in 2019 for $ 7 each. There are 2 comma 000 baskets
denis23 [38]

Answer:

The budgeted sales revenue is : $168,000

Explanation:

In 2019, as Mary's Basket Company has the opening Inventory balance of 2,000 baskets; projects to manufactures 24,000 baskets, plans to maintain ending inventory at $2,000 baskets without any work-in-process inventory; We have the baskets available for sales in the year of 2019 is:

  Actual Ending Balance of 2018 + Projected manufactured baskets during the year 2019 - Planned ending Balance of the year 2019 = 2,000 + 24,000 - 2,000 = 24,000

The unit price is projected at $7.

Thus, we have the projected sales revenue is:

  Projected Unit price x Projected baskets available for sales = 7 x 24,000 = $168,000

7 0
3 years ago
What is one difference between fixed-rate mortgages and variable-rate mortgages?
satela [25.4K]
The correct answer should be <span>B. The interest rate may change depending on the condition of the economy.

Fixed-rate mortgages keep the same rates as they were declared at the time of the contract signing, which can either be great for the person or the bank depending on the economy fluctuations. Variable-rate mortgages change based on the economy which means that the conditions are always kept to a certain standard.</span>
6 0
4 years ago
Other questions:
  • Consider the case of Demed Inc.: Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity.
    15·1 answer
  • During the vulnerability scan, you identified a vulnerable service in the linux victim system. what was the name of the vulnerab
    6·1 answer
  • Based on this income statement for Company ZYX for the year ending December 31, 2014, what adjustment would need to be made to N
    7·1 answer
  • On a shopping trip, Melanie decided to buy a light blue coat made from woven fabric. A tag on the coat stated that the price was
    14·1 answer
  • Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $316,547; costs = $219,406; other
    6·1 answer
  • Which of the following statements is not true concerning Peter Jackson's use of computer-generated imagery in The Lord of the Ri
    11·1 answer
  • Grant Corporation is looking to purchase a building costing $1,300,000 by paying $500,000 cash on the purchase date, and agreein
    14·1 answer
  • Select the correct statement below regarding Manufacturing Overhead: Multiple Choice Manufacturing overhead is always an estimat
    13·1 answer
  • In an electric motor, a commutator
    7·1 answer
  • After Sandra finishes making her list, she does a bit of research to learn about the different technologies available. She
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!