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ra1l [238]
2 years ago
14

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together i

nformation in order to release a financial report. You have found the return on equity to be 16.1 percent. Sales were $1,780,000, the total debt ratio was .31, and total debt was $657,000. What is the return on assets (ROA)
Business
1 answer:
oee [108]2 years ago
7 0

Answer:

11.11%

Explanation:

The computation of the return on assets is given below:

But before that following calculations need to be done

Total assets = Total debt ÷ Total debt ratio

= $657,000 ÷ 0.31

= $2,119,354.839

Total equity = Total Assets - Total Debt

= $2,119,354.839 - $657,000

= $1,462,354.839

Net profit = Total equity × Return on equity

= $1,462,354.839 × 0.161

= $235,439.129

And, finally

ROA = Net profit ÷ Total Assets

= $235,439.129 ÷ $2,119,354.839

= 11.11%

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A firm is considering the purchase of an asset whose risk is greater than the current risk of the firm, based on any method for
Anika [276]

Answer:

e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project

Explanation:

As per the basic concept of investment, "higher the risk, higher the return".

Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.

Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.

So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.

8 0
3 years ago
Classify each of the ofllowing as either a policy instrument or an intermediate target, and explain why?
Solnce55 [7]

Answer: The answers are given below

Explanation:

An intermediate target is a variable this isn't controlled directly under the central bank, but one that has a quick response to policy actions. e.g money supply.

A policy instrument is a tool used to manipulate a variable in the economy and achieve a desired objective. e.g. tax rates, interest rates, subsidies etc.

a. The ten-year Treasury bond rate

It is an intermediate target because isn't controlled directly under the central bank but can be linked to an activity in the economy.

b. The monetary base

This is a policy instrument because used to manipulate a variable in the economy and achieve a desired objective.

c. Ml

This is an intermediate target as it cannot be affected directly by the Federal tools.

d. The fed funds rate

This is a policy instrument as it can be affected directly by Fed tools.

5 0
3 years ago
TJ Vargas signed the back of his checks for deposit and then lost them on the way to the bank. When he contacted the issuers of
Diano4ka-milaya [45]

Answer:

c. For Deposit Only (3846933720). Midwest Bank. TJ Vargas.

Explanation:

When TJ Vargas signed on the back of the check for deposit, he did not specify a particular bank account or was to be paid to.

If a fraudster stole the check and put another account number, the bank will be obligated to transfer to the account they see on the back of the check.

To ensure the endorsement instructs the bank pay only to his account he has to sign for deposit and in addition provide the account to be credited.

8 0
3 years ago
What is a bank that belongs to the federal reserve system called?
Semmy [17]
A bank belonging to the Federal Reserve System is a <span>member bank<span>.</span></span>

Hope this helps!
8 0
3 years ago
Read 2 more answers
Derik was fired from his job at the grocery store. The grocery store told him that the reason he was fired was because of his mu
Anvisha [2.4K]

Incomplete question. The full question read;

Is this prohibited discrimination under the Alberta Human Rights Act?

1) Yes: the prohibited ground would be race, and the prohibited area would be employment.

2) Yes: the prohibited area would be expression, and the prohibited ground would be employment.

3) No: the prohibited area is employment, but there is no prohibited ground.

4) Yes: Derik's freedom of expression is directly involved.

Answer:

<u>1) Yes: the prohibited ground would be race, and the prohibited area would be employment.</u>

Explanation:

The Alberta Human Rights Act prohibits discrimination in a company's employment practices. In other words, the Alberta Act covers discrimination in the area of employment.

Also, the prohibited ground would be race, since the very practice of having multiple nose and facial piercings is usually done among a particular race.

6 0
3 years ago
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