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SCORPION-xisa [38]
3 years ago
5

This year Andrews achieved an ROE of 11.6%. Suppose the Board of Directors of Andrews mandates that management take measures to

increase financial Leverage (=Assets/Equity) next year. Assuming Sales, Profits, and Assets remain the same next year, what effect would you expect this new Leverage policy will have on Andrews ROE?
Business
1 answer:
ivann1987 [24]3 years ago
5 0

Answer: c. Andrews ROE will increase.

Explanation:

The Board of Directors has ordered that measures be put in place to increase financial Leverage which is Assets/Equity. That means that there are 2 ways this is to be done based on the formula which would be to either; increase Assets or Decrease Equity.

It is assumed that Sales, Profits, and <em>Assets </em>remain the same next year so the measures will therefore involve decreasing Equity.

Return on Equity = Net income/Shareholder equity.

Profits are assumed to remain the same, however, as per the Board's directives, Equity will fall. This will mean that Net Income will be divided by a lower figure which will lead to a higher ROE.

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A completely new business solution to solve marine pollution (which is caused by climate change is the production of a new organic material that can be used to clean marine bodies.

<h3>How will this organic material look like?</h3>

Chemicals and debris, the majority of which originates on land and is dumped or blown into the water, make up marine pollution. This pollution harms the ecosystem, the health of all living things, and global economic institutions.

Therefore, the organic material will be a combination of:

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Note that by working on the materials above, one can create an organic material that when scattered or place on top of water bodies, it will make all the pollutant to float upward and then they can be taken out of the water and also it can be taken by man as food as it is organic and would not be harmful to the body.

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8 0
1 year ago
Nikita wants to apply for student aid to fund her college education. Arrange the steps involved in Nikita's application for fina
elixir [45]

1. Nikita creates an FSA ID

2. Nikita fills out the FAFSA online.

3. Colleges ask Nikita to verify the information in the FAFSA

4. Nikita rechecks the information she provided and makes a few corrections.

5. In about two weeks, Nikita receives a document called Student Aid Report (SAR)

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4 0
3 years ago
Read 2 more answers
Reedy Company reports the following information for 2012:
asambeis [7]

Answer:

Ending WIP= $13,500

Explanation:

<u>First, we need to calculate the factory overhead:</u>

Factory overhead= 25,000*0.75= $18,750

<u>Now, the ending WIP inventory:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

68,250 = 11,000 + 27,000 + 25,000 + 18,750 - Ending WIP

Ending WIP= $13,500

4 0
3 years ago
The relationship between the benefits a consumer receives from a product or service and what they give up to obtain those benefi
Alik [6]

Answer:

Customer value

Explanation:

Customer value is a marketing term representing the satisfaction or experience or benefit a customer gets from a product in exchange for the value they give to have access to the satisfaction.

In the future term, it also represents the benefit a customer expects to get from a product mostly based on the promises of the vendor in exchange for the payment or value the customer is expected to transfer to the producer for the product.

The value a customer is to give to derive the satisfaction is not limited to monetary transfers it could also include time, knowledge, even other choice products that could have offered similar benefits. Customer value will help a customer decide whether the benefit from a product is worth the expense or value given to obtain it.

6 0
4 years ago
The first step in the process of creating a marketing plan is to
Maksim231197 [3]
The right answer for the question that is being asked and shown above is that: "• set marketing objectives." The first step in the process of creating a marketing plan is to <span>set marketing objectives. The group must know the goals and objectives why they are making a business or something.</span>
7 0
3 years ago
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