Answer:
2.41%
Explanation:
The difference between the two firms' ROEs is shown below:-
Particulars Firm HD Firm LD
Assets $200 Debt ratio 50% Debt ratio 30%
EBIT $40 Interest rate 12% Interest rate 10%
Tax rate 35%
Debt $100 $60
Interest $12 $6
($100 × 12%) ($60 × 10%)
Taxable income $28 $36
($40- $12) ($40 - $6)
Net income $18.2 $22.1
$28 × (1 - 0.35) $36 × (1 - 0.35)
Equity $100 $140
($200 - $100) ($200 - $60)
ROE 18.2% 15.79%
($18.2 ÷ $100) ($22.1 ÷ $140)
Taxable income = EBIT - Interest
Net income = Income - Taxable income
Equity = Assets - Debt
ROE = Net income ÷ Equity
Difference in ROE = ROE Firm HD - ROE Firm LD
= 18.2% - 15.79%
= 2.41%
So, for computing the difference between the two firms' ROEs we simply deduct the ROE firm LD from ROE firm HD.
Answer:
Accounts
Wages Expense
Wages Payable
$100,000
$100,000
Explanation:
As the expense is accrued but not paid at the end of 2013. The transaction requires an adjusting entry. This will charge a wages expense and create the wages payable liability. Ultimately on January 3 it will be paid. Wages for the two weeks are $100,000 and the 14 days has been passed for the pay period until year end of 2013.
A pretexter is a person who calls your bank or other financial institution pretending to be you or someone else who is authorized on the account.
What is pretexting?
- Pretexting is the act of creating and using an invented scenario (the pretext) to engage a targeted victim in a manner that increases the chance the victim will divulge information or perform actions that would be unlikely in ordinary circumstances.
- An elaborate lie, it most often involves some prior research or setup and the use of this information for impersonation (e.g., date of birth, Social Security number, last bill amount) to establish legitimacy in the mind of the target.
- As a background, pretexting can be interpreted as the first evolution of social engineering, and continued to develop as social engineering incorporated current-day technologies. Current and past examples of pretexting demonstrate this development.
- This technique can be used to fool a business into disclosing customer information as well as by private investigators to obtain telephone records, utility records, banking records and other information directly from company service representatives.
- The information can then be used to establish even greater legitimacy under tougher questioning with a manager, e.g., to make account changes, get specific balances, etc.
- Pretexting can also be used to impersonate co-workers, police, bank, tax authorities, clergy, insurance investigators or any other individual who could have perceived authority or right-to-know in the mind of the targeted victim.
- The pretexter must simply prepare answers to questions that might be asked by the victim. In some cases, all that is needed is a voice that sounds authoritative, an earnest tone, and an ability to think on one's feet to create a pretextual scenario.
To learn more about Pretexting: brainly.com/question/10311345
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I would buy a Chromebook. I would buy a Chromebook because I would be able to do stuff like school work and it would be very helpful so that way I wouldn’t have to narrow my moms Chromebook. That is what I would buy with a million dollars.
Answer:
The Solow model basically states that as more rural and backward economies start to develop, they will use more intensively their cheap labor and savings for investment more than already developed nations, and convergence between rich and poor nations will eventually occur.
Explanation:
The Solow growth model is an exogenous model of growth that tries to examine the changes in the level of output in an economy as a result of some changes in the economy. The changing conditions are; population, rate of savings and technological advancement. The Solow model named after Robert Solow who was a Nobel-prize economist winner, formed the foundation for modern theories of economic growth. Solow's growth models has a variety of assumptions as shown;
1. Rate of population growth is constant
2. The proportion of savings in the economy is constant.
3. The same technology is utilized by all companies in the economy for production.
4. The capital accumulation equation forms a relationship between; Present capital stock, future capital stock, the rate of capital depreciation, and level of capital investment.
Solow's model implied that as more rural and backward economies start to develop, they will use more intensively their cheap labor and savings for investment more than already developed nations, and convergence between rich and poor nations will eventually occur.
