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cricket20 [7]
3 years ago
12

If Roten Rooters, Inc., has an equity multiplier of 1.63, total asset turnover of 2.50, and a profit margin of 4.3 percent, what

is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.).
ROE _________ ?? %
Business
1 answer:
skelet666 [1.2K]3 years ago
5 0

Answer: 17.52%

Explanation:

Equity Multiplier = 1.63

Total asset turnover = 2.50

Profit margin = 4.3%

Rate of Return = Equity Multiplier × Asset turnover × Profit margin

= 1.63 × 2.50 × 4.3%

= 1.63 × 2.50 × 0.043

= 0.175225

= 17.52% approximately

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At Infosoft Solutions, employees are encouraged to take care of their problems by working with one another and with customers, u
likoan [24]

Answer: Decentralized

Explanation: In a decentralized organisation, the seniors in the organisation transfers the authority and responsibility to their subordinates.

This is done by the seniors with the objective of effective running of operations within. The employees in such organisations usually remain more motivated than others.

In the given case, Infososft is encouraging their employees to take their own decisions while dealing with customers. Hence the transfer of authority for decision making is evident.

From the above we can conclude that the correct option is A.

6 0
4 years ago
Jarett & son's common stock currently trades at $30.00 a share. it is expected to pay an annual divident of $1.00 a share a
mart [117]

Answer and Explanation:

The computation is shown below:

a. The company cost of capital is

Cost of equity = (D1 ÷ share price)+ Dividend growth rate

= ($1 ÷ $30) + 0.04

= 0.033 +0.04

= 0.0733 or 7.33%

Now  

b. Cost of new equity is

= (D1 ÷ share price ×  (1 - flotation cost)) + Dividend growth rate

= [$1 ÷ $30 × (1 - 0.1)] + 0.04

= ($1 ÷ $30 × 0.9) + 0.04

= 1 ÷ 27 + 0.04

= 0.037 + 0.04

= 0.07704 or 7.71%

4 0
3 years ago
An engineer sketches detailed drawings of the keypad of a new cell phone. What stage in the product development life cycle is th
Andrej [43]

Answer:

Concept stage

Explanation:

The concept design stage is the stage of the design process that comes after the feasibility of the product has bee conducted and  options or alternatives have been weighed with a decision and product specification documentation created. The concept stage design is the first design on the product showing the details of the product as contained in the specification documentation.

3 0
4 years ago
Why might the prices of some products decrease while others increase?
snow_lady [41]

Some products are better than other ones. So the better one increase , the only that ppl rarely use is going to decrease because ppl rarely use it and it might not work anymore

7 0
3 years ago
Read 2 more answers
Given the general agreement that pollution is undesirable and social welfare is increased by reducing pollution, the optimal lev
Gnoma [55]

Answer:

the level of pollution at which the marginal social cost of pollution is equal to the marginal social benefit of pollution.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Generally, it has been proven beyond reasonable doubt that pollution is undesirable to living organisms such as humans, plants and animals in an environment.

Furthermore, we know and agree that social welfare of the people living across the world is increased by reducing pollution.

Hence, the optimal level of pollution in a society is the level of pollution at which the marginal social cost of pollution is equal to the marginal social benefit of pollution.

7 0
3 years ago
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