Explain why the president has to be
Producers often pass along price increases to customer.
First we calculate the return on equity(ROE) based on the Du-pont equation
ROE = Net profit margin * Total asset turnover * equity multiplier
Total asset turnover = 1/capital intensity =1/1.08
Equity multiplier = 1+ debt to equity = 1+ 0.54 = 1.54
net profit margin = 6.2% = 0.062
ROE = 0.062*1/1.08*1.54 = 0.0884 = 8.84%
Sustainable growth rate = ROE*(1- dividend payout)
Sustainable growth rate = 0.0884*(1-0.4)
Sustainable growth rate= 0.053 = 5.3%
Sustainable growth rate = 5.30%
Answer: $7,200
Explanation:
Maximum interest, while having full insurance, depositing $50,000 in the first financial institution at 8%. This would yield
= 8/100 * $50,000
= 0.08 * $50,000
= $4,000
Then the interest from the second financial institution would be
= 6.4/100 * $50,000
= 0.064 * $50,000
= $3,200
Summing up the interest made from each gives a maximum return of
I = I1 + I2
= $4,000 + $3,200
I = $7,200
Since the student wants full insurance coverage, the student can only earn $7,200 in interest. Not the desired $7,500.
Answer:
$9,600 Financial advantage
Explanation:
Variable Cost per unit for special order = $60 + $40*40%
Variable Cost per unit for special order = $60 + $16
Variable Cost per unit for special order = $76
The financial advantage or disadvantage of accepting the special order = Sales Revenue from special offer - Variable Cost Cost for special offers
= $100*400 units - $76*400 units
= $40,000 - $30,400
= $9,600 Financial advantage (Disadvantage).