Answer:
ROE would have changed by 8.52%
Explanation:
First we calculate the current ROE using Dupont Equation which gives ROE as,
ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity
or
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier
- Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%
The condition says that the net income could have increased to 20850 but other factors will remain constant. Thus, to calculate new ROE, we will calculate the new Net Profit margin but the total assets turnover and the equity multiplier will remain constant as sales assets and capital structure is not changing.
- New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
- The ROE would have changed by 17.32 - 8.80 = 8.52%
Answer:
B
Explanation:
The answer is b
Please mark me brainliest
Answer:
The quantity that Sarah's Machinery Company is indifferent between two technologies is 5.
Explanation:
We are looking for the quantity that Sarah's Machinery Company is indifferent between two technologies, so we have to find the quantity that the total cost with technology A is the same to the total cost with technology B
Total cost technology A=500+50x
Total cost technology B=250+100x
500+50x=250+100x
500-250=100x-50x
250=50x
x=250/50=5
Answer:
A. vault cash and deposits with the Federal Reserve.
Explanation:
- A bank reserves include the vault deposits with the federal reserves and represent a commercial bank holding and are physically held by the bank in the central reserves.
- That is set by the minimum reserve requirements an some of the central banks ted to pay interest on these despots while others don't. They can be various types as reserves on deposits and vault on cash and borrowed reserves and free reserves.