Answer:
A. 1.59%
Explanation:
Return on equity is a measure of profitability of a company in relation to the equity which is assets less liabilities.
Using Du Point analysis,
ROE = Net profit margin × Asset Turnover × Equity multiplier.
Therefore,
ROE of A = 2.2 × 1.7 × 5.0
= 18.7%
For ROE of B to match A
Asset turn over of B = ROE of A / profit margin of B × equity multiplier of B.
NOTE:
This was gotten from from equating ROE of A to ROE of B and making asset turn over of B subject of the formula.
Therefore,
Given that,
ROE of A = 18.7%
Profit margin of B = 2.5%
Equity multiplier of B = 4.7
We then have,
Asset turnover of B = 18.7 ÷ ( 2.5 × 4.7)
= 18.7 ÷ 11.75
=1.59 %
Therefore B needs 1.59% asset turn over to match manufacturers A ROE
Answer:
Inflation rates for Canada = 3.3%
Inflation rates for Mexico = 9.1%
Explanation:
Data provided in the question:
For Canada
CPI in 2014 = 120
CPI in 2015 = 124
For Mexico
CPI in 2014 = 210
CPI in 2015 = 229.1
Now,
The inflation = [( Current CPI - Base year CPI) ÷ Base year CPI ] × 100%
Therefore,
For Canada
Inflation = [ (124 - 120 ) ÷ 120 ] × 100%
= 3.3%
For Mexico
Inflation = [ (229.1 - 210 ) ÷ 210 ] × 100%
= 9.1%
Answer: Option (D)
Explanation:
A variable tends to be either continuous or discrete. If the variable tends to have two significant real values so that it tends to take on real values in between them, then variable is considered to be continuous. If it tends to take on significant value so that there is non-infinitesimal gap on either side of it with no values it can take, then that variable is considered to be discrete.
Answer:
(a). For every additional square foot of area of a house, the price is predicted to increase by $61
(b) The asking price is $145410 and the residual is a negative $4100
Explanation:
As per the data given in the question,
a) From regression equation Slope = 0.061
So slope = (0.061 × 1,000) ÷ 1 sq. ft.
= $61 per sq. ft.
For every additional square foot area price is increased by $61
b) If size of the house is = 1600 square foot then
Price = 47.81 + 1600*0.061
=$145,410
The asked price is $4,100 less than estimated price and residual is not positive
Hence,
Asking price = $145,410
Residual price = a negative $4,100
Answer:
C. The flow of goods and services.
Explanation:
Balance of trade: In Economics, the balance of trade accounts for the inflow and outflow of the goods and services in in a country for a given period, it is also called the <em>balance of payment.</em>
