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Gnesinka [82]
4 years ago
9

An increase in ROE would imply an increase in shareholder wealth. Based on your understanding of the uses and limitations of ROE

, a rational investor is likely to prefer an investment option that has: A high ROE and high risk A high ROE and low risk
Business
1 answer:
Sonja [21]4 years ago
6 0

Answer:

The correct answer is the second option: A high ROE and low risk.  

Explanation:

To begin with, the concept of <em>"Return of Equity"</em> or ROE refers to a measure used in the field of business that mainly focus in the relationship between the profits and the equity of the company and therefore that it shows how profitable the company is regarding the amount of its equity. Moreover, this measure  focus on the amount of dollars that the company gains regading the amount of equity that the company uses. Therefore that a rational investor is likely to prefer an investment option that has a high ROE and low risk at the time of taking the decision.

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Why do some auto insurance customers want medical coverage for their
velikii [3]

9514 1404 393

Answer:

  C.  To avoid having to pay for hospital bills resulting from an accident they cause

Explanation:

The purpose of any sort of insurance is to limit or eliminate the policy-holder's liability. Medical insurance in an auto policy pays for medical bills the policy-holder might otherwise be liable for as a consequence of an auto accident.

4 0
3 years ago
What is personal finance? Personal finance is essentially about finance at a_____ level. It helps improve your short term and lo
SVETLANKA909090 [29]

Answer:

The answer would be Basic, Prosperity.

Explanation:

Personal finance is essentially about finances at a basic level. It helps improve your short term and long term Prosperity.

Personal finances are the finances or money of a person solely belong to himself. A person's own finances are usually limited. He can meet the basic necessities for himself and his family. These finances can be used to bring prosperity to a person and his family. Personal finances are always help in the time of emergency. People manage their personal finances for the future of their children, to manage their education, and to live a life of their personal choice and ease.  

8 0
4 years ago
Read 2 more answers
Super Saver Groceries purchased store equipment for $43,000. Super Saver estimates that at the end of its 10-year service life,
PSYCHO15rus [73]

Answer:

Straight-line = $3,900

Double Declining Method = $7,800

Activity Based = $3,600

Explanation:

1. Straight-line.

Depreciation Expense = (Cost of Asset - Salvage Value) / Useful Life

                                     = $43,000 - $4,000 / 10

                                    = $3,900

2. Double Declining Method

Deprectiation Expense = (2 x (Cost of Asset - Salvage Value)) / Useful Life

= 2 x ($43,000 - $4,000) / 10

= (2 x $39,000 ) / 10

= $78,000 / 10

= $7,800

3. Activity Based

Depreciation Expense = (Cost of Asset - Salvage Value) x Activity Peformed / Estimated Lifetime Acitity

= ($43,000 - $4,000) x 1,200 hours / 13,000 hours

= $39,000 x 1,200 / 13,000

= $3,600

                           

5 0
4 years ago
Confronted with the same unit cost data, a monopolistic producer will charge Group of answer choices
dsp73

Answer:

a higher price and produce a smaller output than a competitive firm

Explanation:

A monpolistically competitive firm is a firm that :

1. Sells differentiated products from other firms in the industry.

2. Has many buyers and sellers

3. Is a price maker

4. Has no barrier to entry or exist of firms

An example of a monpolistically competitive firm is a resturant.

A competitive firm is a firm that:

1. Sells identical goods with other firms in the industry.

2. Is a price taker . Prices are set by forces of demand and supply

3. Has many buyers and sellers

4. There are no barriers to entry or exist of firms.

When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.

While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.

A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.

5 0
4 years ago
Gabriele Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and sel
Ulleksa [173]

Answer:

5.52%

Explanation:

For computing the coupon rate we first have to determine the PMT by applying the PMT formula

Given that,  

Present value = $954

Future value = $1,000

Rate of interest = 6.2%

NPER = 9 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $55.18

Now the coupon rate is

= $55.18 ÷ $1,000

= 5.52%

7 0
4 years ago
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