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Viktor [21]
3 years ago
5

The Dennis Company reported net income of $50,000 on sales of $300,000. The company has average total assets of $500,000 and ave

rage total liabilities of $100,000. What is the company's return on equity ratio?
A) 10.0%.B) 16.7%.C) 12.5%.D) 50.0%.
Business
1 answer:
densk [106]3 years ago
7 0

Answer:

C) 12.5%

Explanation:

The computation of the return on equity is shown below

Return on equity is

= net income ÷ equity

where,

equity is

= Total assets - total liabilities

= $500,000 - $100,000

= $400,000

Now the return on equity is

= $50,000 ÷ $400,000

= 12.50%

Hence, the return on equity is 12.50%

Therefore the corredct option is c.

You might be interested in
Dechow Company has outstanding 20,000 shares of $50 par value, 6% cumulative preferred stock and 50,000 shares of $10 par value
JulijaS [17]

Answer:

a. Dividends to Preferred shareholders:

Total dividends:

= 20,000 * 50 * 6%

= $60,000

Dividends per preferred share:

= 60,000 / 20,000 shares

= $3.00 per share

Common shareholder dividends

Common shareholders get the remaining dividends that did not go to Preferred shareholders:

= 160,000 - 60,000

= $100,000

Common dividends per share:

= 100,000 / 50,000 shares

= $2.00 per share

b. These are cumulative preferred shares which means that accrued dividends must be paid off:

Preferred shares in total would be:

= 60,000 * 2

= $120,000

Preferred dividends per share:

= 120,000 / 20,000

= $6.00 per share

Common dividends in total:

= 160,000 - 120,000

= $40,000

Common dividends per share:

= 40,000 / 50,000 shares

= $0.80 per share

8 0
3 years ago
Which of the following selections effectively use the "you" view. Check all that apply.
Bas_tet [7]

Answer:

A. Your name will be automatically entered in the raffle if you attend the annual company BBQ.

B. Your satisfaction is important to us. Please complete the customer satisfaction survey.

Explanation:

The you view is used to emphasise the receiver of the message and give less attention to the sender. The other two options use 'we' indicating focus on the sender. While the correct options use 'your' with emphasis on the receiver.

8 0
3 years ago
Product X used the following quantity of activity drivers to produce 100 units of final product: 25 setups, 40 material moves an
n200080 [17]

Answer:

$137.50 per unit

Explanation:

The computation of the total indirect manufacturing cost per unit is shown below:

Machine setups  15000 ÷ 100 × 25 = $3750

Material moves   22500 ÷ 225 × 40 = $4000

M/c. Operations 14000 ÷ 175 × 75 = $6000

Total Cost for 100 units                     $13,750

And since there is 100 units

So, the total indirect manufcturing cost per unit is

= $13,750 ÷100 units

= $137.50

8 0
3 years ago
1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return
inessss [21]

Answer:

$812.20

Explanation:

Given the following bond characteristic:

Coupon rate = 12%

Market or yield rate = 15%

Years to maturity = 20 years

Face or par value = $1000

Inputting the values into a bond value calculator, the bond value output is : $812.20

This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.

6 0
3 years ago
The crucial issue with the continuity factor of a business’s organizational form is _______.
zalisa [80]
The answer is C, The method by which the business can be dissolved

The simplest way to explain what continuity factor is it's the assumption that a business organization will always able to operate.

 But in the real world, businesses went down all the time, that's why the partners have to find out the method to dissolve the business if somehow the business goes under
3 0
3 years ago
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