Answer:
Total assets turnover = 5.5
Equity multiplier = 1.55
Explanation:
The return on assets (ROA = 11%) is defined as the profit margin (2%) multiplied by the total assets turnover (TAT):
The return on equity (ROE = 17%) is defined as the product of the return on assets (ROA = 11%) by the equity multiplier (EM):
The company's total assets turnover is 5.5
The firm's equity multiplier is 1.55
Answer:
$210,000
Explanation:
With the provided information we have,
August budgeted sales = 8,000 units
Growth every month = 5% increase in units
Sales for September = 8,000 + (8,000 
5%)
= 8,000 + 400 units = 8,400 units
Selling price = $25 for each unit
Therefore, expected sales total for the month of September = 8,400 $25 = $210,000
Loyalty Points From the Customers.
Explanation:
The company is trying to have loyalty points by reducing the gap between the customer and the organisation.
1. Since Tara's company has received bad publicity they are trying to improve as through various sales promotion techniques the customers perception towards the company and its product would change.
2. This would have a win-win situation at both the end. The Business would create not only monitory profits by also have loyal customers that are satisfies at the other end.
Answer:
a. demand assurances of performance from Massive.
Explanation:
When Silas Paving Co finds out about the sale of Massive Earthmovers assets to Phoenix Equipment corp, it should find out from Massive if there is still assurance of performance on their contract. If assurance is given by Massive that the contract still holds then Silas Paving Co does not need to worry.
If however there is no assurance from Massive then Silas will be able to take action against Massive for breach of contract.
<u>Answer:</u>
Federal bank increase initial reserves (by purchase of government bonds) by $8 million, to increase money supply by $40 million
<u>Explanation:</u>
Open market operations refer to buying 7 selling of government securities, to regulate money supply. To increase money supply, central bank buys the government bonds. As, purchase transaction from commercial bank or public imply they have more liquid money supplied.
Money multiplier reflects the multiple change in total money deposits, due to increase in initial deposits.
Final Deposits = (1 / RR) x Initial Deposits; where RR = Reserve requirement
Needed increase in money supply = 40 million, Reserve requirement = 20%
∴ 40 = ( 1 / 0.20 ) x Initial deposits
40 = 5 x Initial Deposits
Initial Deposits = 40 / 5
Initial deposits = 8
