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
Fed [463]
4 years ago
14

Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $320,000 and its net i

ncome was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? Select the correct answer. a. 4.38% b. 2.14% c. 3.26% d. 3.82% e. 2.70%
Business
1 answer:
docker41 [41]4 years ago
4 0

Answer: d. 3.82%

Explanation:

ROE = Net Income / Equity so Equity need to be ascertained.

1.75 = Total Assets/ Total Equity

Total Equity = Total Assets/ 1.75

1.33 = Revenue / Total Assets

Total Assets = Revenue / 1.33

= 320,000/1.33

= $240,601.50

Total Equity = 240,601.50/1.75

= $137,486.57

Old ROE = 10,549/ 137,489.57

= 0.07672582

= 7.67%

New ROE = (10,549 + 5,250) / 137,489.57

= 0.11491053466

= 11.49%

Difference = 11.49 - 7.67

= 3.82%

You might be interested in
The results of the experiment performed in the passage, and the model proposed in response, suggest that what relationship exist
LuckyWell [14K]

The surface activity of the monomers is decreased in each mutant protein, allowing release of the monomers from the interface.

Explanation:

Compression of the film is a consequence of withdrawal of protein solution from the droplet during step 2 of the pendant droplet test.

This is shown by the folds in the region around the dropping collar, which can be seen more distinctly after a more liquid retraction.

The wrinkles of the protein film analysis revealed that there has been no relaxation for 10 minutes after compression, which means that this surface layer is stable. Such findings show that BslA can self-assemble into a stable and complex superior film without the help of a protein or carbohydrate partner.

7 0
3 years ago
1. Your older sister, Anna is trying to figure out how she's going to pay for college in the
Elis [28]
1.) student loans due to the fact that they are more secure than credit card debt and maybe have long periods before they have to be paid off.
2.) chad has a maximum amount of money he can use before it has to be paid back. Unfortunately chads maximum was so low he couldn’t even buy popcorn, or he already maxed out his card.
6 0
3 years ago
Suppose i would like to prevent a line break in word from splitting apart my customer's title and name, "mr. jones", should it h
Phantasy [73]
That is really hard to answer what are u working on
7 0
4 years ago
A $1,000 face value bond is currently quoted at 101.2. the bond pays semiannual payments of $28.50 each and matures in six years
goblinko [34]
Coupon rate is the yearly interest earned by a loan and it can be calculated with

C = \frac{i}{p}

where i is the annual interest and p is the par value of the bond or the initial loan amount.

For this particular case, since the semiannual payment is $28.50, then the annual payment is 2 x 28.50 = $57.00.

Thus, we have 

C = \frac{57}{1000} = 0.057

From this, the coupon rate is 0.057 x 100% = 5.7%.
Answer: 5.7%

7 0
3 years ago
Belton, Inc. had the following transactions in 2018, its first year of operations:• Issued 33,000 shares of common stock. Stock
Finger [1]

Answer:

A) $792,000

Explanation:

33,000 shares of common stock

issued at:

market value 24 dollars

face vale         1 dollar

additional paid-in 23 per share

<u>Equity:</u>

<em>Common Stock </em>

33,000 shares x   1 =    33,000

<em>Additional Paid-in capital</em>

33,000 shares x 23 = 759,000

Total capital               792,000

The total paid-in capital will be the sum of both, the common stock and the paid-in capital in excess of par.

5 0
3 years ago
Other questions:
  • By the early 1990s, the world was spending how many dollars a year on war?
    7·1 answer
  • Which of the following is an advantage of using the Clipboard task pane?
    12·2 answers
  • Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of
    8·1 answer
  • All of the following are stakeholders of a firm, except
    5·2 answers
  • Which of the steps listed below are part of the fulfillment process.a. Purchase order sent to vendorb. Goods receipt postedc. Bi
    13·1 answer
  • Name the written test a potential driver must pass and list the minimum required score to earn a learner’s license.
    6·1 answer
  • Instead of FDI, a company could choose ______, which involves producing goods at home and shipping them overseas, or ______, whi
    5·1 answer
  • Question 2 of 10
    8·1 answer
  • Intuitive decision making uses ____ to make decisions
    8·1 answer
  • An annual report for International Paper Company included the following note:The last-in, first-out inventory method is used to
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!