Answer:
Explanation:
Net Income = 20m
Sales = 100m
Debt-equity ration = 40%
Asset turnover = 0.60
A)
Profit Margin = Net Income / Sales  = $20 million / $100 million  = 20%
Equity Multiplier = 1 + Debt-Equity Ratio  = 1 + 0.40  = 1.40
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier               = 20% * 0.60 * 1.40  = 16.80%
B)
Debt-equity ratio = 60%
Equity Multiplier = 1 + Debt-Equity Ratio  = 1 + 0.60  = 1.60
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier  = 20% * 0.60 * 1.60 = 19.20%
As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%) 
 
        
             
        
        
        
Answer:
A. Using the same format you would use if you were responding in writing
Explanation:
here the answer should be A that is
A. Using the same format you would use if you were responding in writing.
What this means is that,  the response should be neutral and catered in a way that we would if we're writing the answer in order to allow a better, more neutral understanding of the process, unless otherwise stated.
 
        
             
        
        
        
Answer:
e) perfectly elastic
Explanation:
Elasticity is a measure of the sensitivity of demand to the price of a product. If demand is elastic, bidders should avoid raising prices as demand decreases considerably. Conversely, when demand is inelastic, consumers are less sensitive to price changes. When demand is perfectly elastic, this means that a slight increase in the price of a good will cause all demand to flow to a competing supplier. This is observed in competitive markets where providers provide the same type of good for the market price. If one of them raises the price, he loses all of his market share. This is because consumers are rational and will buy the product that is offered at the lowest possible price.
 
        
             
        
        
        
Answer: hello your question is incomplete attached below is the complete question.
answer :
3.02 million,    2.96 million,    2.91 million 
Explanation:
<u>Determine the swap rate over a 3-year period</u>
swap rate = forward exchange rate * exchange amount 
For year 1 
1.4 * ( 1 + 0.03 / 1 + 0.05 ) * 2.2 million
= 1.4 ( 0.98095 ) * 2.2 
= 3.02 million 
For year 2 
1.4 * ( 1 + 0.03 / 1 + 0.05 )^2 * 2..2 million 
= 1.4 ( 0.98095 )^2 * 2.2 million
= 2.96378 million
For year 3 
1.4 * ( 1 + 0.03 / 1 + 0.05 )^3 * 2.2 million
= 1.4 ( 0.98095 )^3 * 2.2 million
= 2.90733 million  
 
        
             
        
        
        
Answer: 

This profit equation is an equation of a parabola that opens downward (Since A=-0.07<0) and has its vertex at

Thus, revenue is maximized when x=250 hundred units. At this quantity maximum profit is 
P(250)=3800.23 hundred dollars
b. Profits are maximised at x=250 hundred units. The per unit price at this is, 
