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3 years ago

Use the following information to answer this question.

Business

1 answer:

Oksanka [162]3 years ago

3 0

Answer:

15.01%

Explanation:

The computation of the return on equity is shown below:

Return on equity = Net income ÷ Equity at the end of 2010 × 100

where,

Net income is $539

And, the equity at the end of 2010 is

= Common Stock + Retained Earnings

= $2,890 + $700

= $3,590

So, the return on equity is

= $539 ÷ $3,590 × 100

= 15.01%

We simply applied the above formula to determine the return on equity

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A $25,000 bank loan is to be repaid in equal yearly payments of $2745 over 15 yr at an effective annual interest rate of 7%. The

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Answer:

The present-day value of the earnings over 15 years as a result of this loan and investment venture is:

= $24,998.51.

Explanation:

a) Bank loan = $25,000

Annuity Payment = $2,745 yearly

Period of loan = 15 years

Effective annual interest rate = 7%

Effective annual return = 10%

Future value of $25,000 at 10% for 15 years = $25,000 * 4.1777

= $104,425

The present-day value of $104,425 over 15 years at 10% effective annual return, using an online financial calculator =

N (# of periods) = 15 years

I/Y (Interest per year) = 10 years

PMT (Periodic Payment) = 0

FV (Future Value) = $104,425

Results

PV = $24,998.51

Total Interest $79,426.49

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3 years ago

8. Hebner Housing Corporation has forecast the following numbers for this upcoming year: Sales $1,000,000 Cost of Goods Sold 600

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Answer:

Sales = 12,50,000

Explanation:

Detailed steps are given below

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4 years ago

g You own shares of a company that reported after-tax earnings of $29 million and has issued 2 million shares of stock. The comp

musickatia [10]

Answer: 0.35

Explanation:

The Price to Earnings ratio is used to value companies and is calculated by dividing the company's stock price by its earnings per share.

Earnings per share = 29,000,000/2,000,000 shares

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PE ratio = Share price / Earnings per share

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3 years ago

Suppose that, on the basis of a nation’s production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to

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Answer:

B. The input gains from greater international specialization and trade are the equivalent of economic growth.

Explanation:

If a country moves outside its production possibilities curve, the country has experienced economic growth, precisely because it has increased the amount of goods it can produce according to the production possibilities curve.

International trade thus facilitates economic growth because it makes each country focus on the production of the goods that have the lower opportunity cost, and therefore, use the country's resources more efficiently. This, added to technological improvements, can help a country's economy become larger in both the short and long-term.

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3 years ago

The selected inventory costing method impacts:________

Alisiya [41]

Answer:

The correct option is a) Gross profit and ending inventory.

Explanation:

The inventory technique is a method of accounting for calculating the value of an inventory. The approach calculates the ending inventory balance by comparing the inventory cost to the merchandise price.

There are three methods for valuing inventory whic are FIFO (First In, First Out), LIFO (Last In, First Out), and WAC (Weighted Average Cost) (Weighted Average Cost). The gross profit and ending inventory are affected differently by each of these costing methods.

This implies that the selected inventory costing method impacts gross profit and ending inventory.

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3 years ago