All categories

2 years ago

Which term can be defined as the net income that a firm reinvests in itself?

Business

1 answer:

KengaRu [80]2 years ago

6 0

Answer:

retention ratio

Explanation:

Retention ration is the portion of net income retained by a firm to grow its business rather than being declared and paid as dividened.

When a company makes profit at the end of financial period, the company can either retain part of its earning for business expansion, declare part as dividends paid to shareholder or combine both.

Where a firm now reinvest the portion of the profit earned in itself, it is called retention ratio.

You might be interested in

Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number

lions [1.4K]

Answer:

Alwan expect to pay for airplane 4= $747818.48

Explanation:

given data

expect to pay airplane = 4

3rd plane produce = 20,000 hours

learning curve = 85%

solution

As here logarithmic approach allow get labor for any unit, TN, as

TN = T1(Nb)

here TN is time for the Nth unit and T1 is hours to produce the first unit

b = (log of the learning rate) ÷ (log 2) = slope of the learning curve

T3 = T1(3log(0.85)÷log2)

so we get

So Alwan expect to pay for airplane 4 = $747818.48

6 0

3 years ago

Three people invest in a business. The first two invest in the ratio 2:3, and the third person

Diano4ka-milaya [45]

Answer:

$15 million

Explanation:

The three investors' total investments would add up to 100% or 1.

The first two invested in the ration of 2:3

It means ;

Investor 1: 2/5

Investor 2: 3/5

If investor 3 invested twice as investor 1 and 2, then we can deduce that he invested ( 2/5 + 3/5) x 2

the new denominator is 10, meaning

Investor 1 had 2/10,

investor 2 had 3/10

investor 3 had 5/10

If total investments were $30 million, then the highest investor invested

5/10 x $30million

=0.5 x $30 million

=$15 million

5 0

3 years ago

Amy, a baker, has found her dream home, but cannot afford the down payment. Amy’s brother agrees to loan her $3000 for the down

Kitty [74]

Answer:

$0 because an agreement to accept different performance in lieu of full payment of liquidated debt is binding.

Explanation:

Since there is an agreement between Amy, a baker, and her brother, she owes him $0.

At first, Amy gets a loan of $3,000 from her brother to pay for her dream home. She agrees to pay him back in one year, and that agreement was binding. During the time to pay back the loan, Amy offers to bake her brother's wedding cake instead of paying back the loan and her brother accepts. This has presented a new agreement that overrules the previous agreement. Now instead of paying back the $3,000, she would bake a wedding cake for him. This implies that the wedding cake is equal to $3,000.

Therefore, she owes him $0.

4 0

3 years ago

In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal

Zigmanuir [339]

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

3 0

3 years ago

If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors r

satela [25.4K]

Answer:

Increase

Explanation:

Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase

8 0

2 years ago