Answer:
13%
Explanation:
Given that,
Investment (100% equity) = $700,000
EBIT = $140,000
Tax rate = 35%
Earnings after tax:
= Investment (100% equity) + Earnings before interest and taxes - Tax (35%)
= $700,000 + $140,000 - ($140,000 × 0.35)
= $840,000 - $49,000
= $91,000
ROE = Earnings after tax ÷ Investment
= $91,000 ÷ $700,000
= 13%
Answer:
Dimitri, his parents, his two brothers, and his mother’s parents live on a farm in southeast Iowa.
Answer:
Leverage factor will be 1.344
Explanation:
We have given operating income = $29000
And variable expenses is 65 5 of the sales
And fixed expenses = $10000
So contribution margin = $29000+$10000 = $39000
We have to find the leverage factor
Leverage factor is given by
Leverage factor ![=\frac{contribution\ margin}{operating\ income }=\frac{39000}{29000}=1.344](https://tex.z-dn.net/?f=%3D%5Cfrac%7Bcontribution%5C%20margin%7D%7Boperating%5C%20income%20%7D%3D%5Cfrac%7B39000%7D%7B29000%7D%3D1.344)
So leverage factor will be 1.344
Answer:
Spain has a comparative advantage in the production of olives and;
Austria has a comparative advantage in the production of fish
9 pounds of fish per crate of olives (being more favorable to Spain)
6 pounds of fish per crate of olives (being more favorable to Austria)
Explanation:
Spain renounce to 5 pounds of fish to produce olives while Austria to 10
threfore is much better in competitive term for Spain as the opportunity cost is lower
The opposite is true for Autria regarding fish production. is better producing that as renounce to less olives than Spain
Austria will sale above purchase olive for less than 10
while Spain will sale for more than 5
Given this requirement there are two options which allow for trade and generate gain for both countries.