<u>Calculation of Edelman's market/book ratio:</u>
The market/book ratio is calculated with the help of following formula:
Market/book ratio = Market price per share / Book value per share
The Book value per share can be calculated as follows;
Book value per share =Common Equity/ Shares of common stock outstanding
= 8,000,000,000 /500,000,000
= 16
Hence ,
Market/book ratio = 25/16 = 1.56
Hence, Edelman's market/book ratio is <u>1.56</u>
Answer:
(B) Unity of direction
Explanation:
The principal of unity of direction is one of the 14 administrative principles developed by Henri Fayol. It is a concept found in administrative management theory. The principle provides that there should be only one leader and one plan for a series of activities seeking the accomplishment of the same objective
Answer:
c. pay off accounts payable prior to year-end.
Explanation:
The current ratio refers to the relationship between the current assets and the current liabilities
The formula to compute is as follows
Current ratio = Current assets ÷ current liabilities
It is a liquidity ratio that represents the liquidity of the company
Now for improving the current ratio first the company pay off the account payable before the year ending as it automatically reduced the balance of account payable
Hence, the correct option is c.
Answer:
C. (return on total assets) times (financial leverage multiplier)
Explanation:
The formula of return on equity using the DuPont system is presented below:
ROE = Profit margin × Total assets turnover × Equity multiplier
where,
Profit margin × Total asset turnover = Return on asset
The equity multiplier is
= Total assets ÷ shareholder equity
The total asset turnover equal to
= Sales ÷ Total assets
And, The profit margin equal to
= (Operating income ÷ sales) × 100
