Descriptions about simple interest and yearly compounded interest are true are :
- Only compound interest has an exponent in its formula.
- Simple interest is only earned on the original principal investment.
- Compound interest is earned on principal and interest.
<h3>What is
simple interest and compound interest?</h3>
Simple interest is the one that the calculation is based on principal, or of a loan.
Compound interest is base on principal amount as well as the accumulated interest of previous periods.
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Answer:
Profit margin (PM) the firm needs in order to achieve the 15% ROE: a. 5.41%
Explanation:
The profit margin reflects a company's overall ability to turn income into profit, is calculated by formula:
Profit margin = Net income/Net sales
The return on equity (ROE) is calculated by following formula:
ROE = Net income/shareholder's equity
New Doors Corp. uses $187,500 of total shareholder's equity capital and gets the return on equity (ROE) up to 15.0%
Net income = ROE x Shareholder's equity = 15.0% x $187,500 = $28,125
Profit margin = $28,125/$520,000 = 0.0541 = 5.41%
The store owners must make a decision to set a low milk price thinking about the people but if they think of their profit then they should better decide to set a high milk price.
When all authorized shares of a corporation’s stock have the same rights and characteristics, the stock is called a common stock.
<h3>What is a common stock?</h3>
A common stock gives the holder ownership rights in the public company that issues the stock. Common stocks are issued to raise capital for business operations.
Common stocks gives the holder to receive dividend and it grants the holder voting rights.
To learn more about how to a stock, please check: brainly.com/question/18648993
