Answer: Company should not expand to either.
Explanation:
Find the expected values of expanding to either country and pick the country with the highest expected value:
China:
= ∑(Probability of outcome * Outcome)
= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)
= -$300,000
Vietnam:
= (70% * 1,000,000) + (30% * -2,500,000)
= -$50,000
<em>Both countries result in an expected loss so company should not expand to either of them. </em>
Answer:
C. It has high fixed costs relative to variable costs is the correct answer.
Explanation:
I think its D. hope this helps
Answer:
11.30%
Explanation:
Roten rooters have an equity multiplier of 1.52
The total assets turnover is 1.20
The profit margin is 6.2%
= 6.2/100
= 0.062
Therefore the ROE can be calculated as follows
= 0.062× 1.52×1.20
= 0.1130×100
= 11.30%
Hence the ROE is 11.30%