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GuDViN [60]
3 years ago
8

Y3K, Inc., has sales of $4,400, total assets of $2,985, and a debt-equity ratio of 1.20. If its return on equity is 16 percent,

what its net income?
Business
1 answer:
Svetllana [295]3 years ago
3 0

Answer:

$217.668

Explanation:

The computation of net income is shown below:-

ROE = Profit Margin × Total Asset Turnover × Equity Multiplier (Assets ÷ Equity)

ROE = (Profit Margin) × (Sales ÷ Total Assets) × (1 + Debt-Equity ratio)

16% = Profit margin × ($4,400 ÷ $2,985) × ( 1 + 1.20)

16% = Profit margin × 1.47 × 2.20

16% = Profit margin × 3.234

Profit margin = 16% ÷ 3.234

= 0.04947

Now as we know that

Profit margin = Net income ÷ Sales

0.04947 = net income ÷ $4,400

net income is

= $4,400 × 0.04947

= $217.668

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Answer:

Make since the relevant cost to make it is $59.05

Explanation:

Calculation to determine what Epsilon should choose to:

Relevant costs to make = 8.20 + 24.20 + [41*(100%-35%)]

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Relevant costs to make = 8.20 + 24.20 + 26.65

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Therefore Epsilon should choose to: MAKE SINCE THE RELEVANT COST TO MAKE IT IS $59.05

8 0
2 years ago
Al contracted to sell his house to bev. subsequently, they both changed their minds and agreed to cancel the contract. the contr
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Given that <span>Al contracted to sell his house to bev. subsequently, they both changed their minds and agreed to cancel the contract.

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6 0
3 years ago
With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at
Alika [10]

Answer:

''there will be at most as many POSITIVE rates...''

Explanation:

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It is used in;

(1). Savings and loans.

(2). Liabilities

(3). Fixed incomes

(4). Private equity and capital management.

(5). Maximizing total present value and so on.

It can be calculate using the formula below:

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That is internal rate of return can be use in solving NPV = 0.

Therefore, 'With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at most as many POSITIVE rates of return as there are sign changes in the cash flow profile.''

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3 years ago
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Answer:

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Answer:

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