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solniwko [45]
4 years ago
6

When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard. true?

Business
1 answer:
antiseptic1488 [7]4 years ago
5 0
The statement is true. A financial ratio or also known as the  accounting ratio is a relative size of two chose numerical esteems taken from a venture's monetary articulations. Regularly utilized as a part of bookkeeping, there are numerous standard proportions used to endeavor to assess the general monetary state of a partnership or other association.
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The risk free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta of 2.2 and a standard deviati
4vir4ik [10]

Answer:

20.1%

Explanation:

In capital asset prcing model (CAPM), cost of equity (or cost of retained earnings in this context) is calculated as below:

<em>Cost of equity = risk-free rate of return + beta x (market index return - risk-free rate of return)</em>

Please note that <em>(market index return - risk-free rate of return)</em> is equal to <em>market risk premium</em>

Putting all the number together, we have:

Cost of equity/retained earnings = 2.5% + 2.2 x 8% = 20.1%

<em>Note: The dividend growth rate, tax rate & stock standard deviation is not relevant in answering the question.</em>

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3 years ago
Lois, a single taxpayer, contributed $1,200 to her traditional IRA in 2019. If she received a $240 saver’s credit and was not an
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Answer:

$960

Explanation:

Given the information from the question. We need to calculate the contribution can she deduct Since Lois paid $1200 to customary IRA and she received a $240 savers credit. Thus, she will get derivation commitment less savers credit .as a result to get contribution can she deduct is $1200-$240= $960. Therefore, the correct answer is $960.

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4 years ago
True or false? Inbound means creating marketing and sales that people love by providing helpful content and resources that attra
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true

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4 years ago
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C. What the program will ultimately cost the federal government

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3 years ago
Assume that during May, a company sold a product for $160,000 that includes a 36-month warranty. Historically, the average cost
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A. Debit; product warranty expense
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