Answer:
ROE would have changed by 8.52%
Explanation:
First we calculate the current ROE using Dupont Equation which gives ROE as,
ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity
or
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier
- Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%
The condition says that the net income could have increased to 20850 but other factors will remain constant. Thus, to calculate new ROE, we will calculate the new Net Profit margin but the total assets turnover and the equity multiplier will remain constant as sales assets and capital structure is not changing.
- New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
- The ROE would have changed by 17.32 - 8.80 = 8.52%
Answer: One of the costs of not having insurance is the cost of repairing. Another cost is paying insurance premiums. Losses caused by a lack of insurance are the price of not having insurance.
Answer:
The correct answer is "indirect attack or bypass attack"
Explanation:
Bypass Attack or indirect attack is when the market challenger doesn´t attack directly a company leader, but increases its market share by attacking the vulnerable market.
Expanding into the untapped markets and innovating the actual product with technology.
Answer:
Coupon rate is 6.4%
Explanation:
The coupon payment on a bond can be computed from a formula of current price of a bond
current price of a bond=coupon amount/yield to maturity
coupon amount=current price *yield to maturity
current price is $1039
yield to maturity is 6.2%
coupon rate =$1039*6.2%
=$64.42
Coupon rate=coupon amount/par value of bond
coupon amount $64.42
par value of bond=$1000
coupon rate =$64.42/$1000
=6.4%
Answer:
$3,122.96
Explanation:
Future value = 5000
i = 8%
n = 6
m = 2
Present Value = FV(1+i/m)^mn
Present Value = 5,000(1+0.08/2)^-2*6
Present Value = 5,000(1.04)^-12
Present Value = 5,000 / (1.04)^12
Present Value = 5,000 / 1.6010322
Present Value = 3122.985284118583
Present Value = $3,122.96
