Answer: 10%
Explanation:
If CC finances with 40% debt.
Return on Equity = Net Income/ Equity
Equity = Assets * ( 1 - debt)
= 2,000,000 * ( 1 - 40%)
= $1,200,000
Debt will therefore be;
= 2,000,000 -1,200,000
= $800,000
Net Income = (Earnings before Tax and Interest - Interest) * (1 - Tax)
EBIT = Basic earning ratio of 30% = 30% * 2,000,000
= $600,000
Net Income = [600,000 - ( 800,000 * 10%)] * ( 1 - 25%)
= $390,000
Return on Equity = 390,000/1,200,000
= 0.33
= 33%
If CC finances entirely with common stock
Net Income = Earnings before Tax and Interest * (1 - Tax)
= 600,000 * ( 1 - 25%)
= $450,000
Return on Equity = Net Income/ Equity
= 450,000/2,000,000
= 0.23
= 23%
Difference between financing with 40% debt and financing entirely with equity
= 33% - 23%
= 10%
Answer:
C) had a strong focus on the Chinese as scapegoeats for the economic woes of California workers.
Explanation:
During the 19th and 20th century, the so-called <em>Coolies</em> , Asian people who were brought from China to work in America, made economical situation even worse in the USA, for many Americans lost their job for these people for a cheaper salary.
Answer: Option C
Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.
While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.
This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.
Hello!
Think of a machine. You put something in. This is the input. The conversion process is whatever goes on inside the machine. Let's say that the machine will spray paint a vase you put into it. The vase is the input. The spray painting is the conversion process. What comes out of the machine, or the result, is the output. In our example it would be the painted vase.
The conversion process changes the input into the output.
For example, think of a function, or a table. Let's say that we have the rule, +1. Let's say our input is 1. The conversion process is +1. This makes 1 become the output of two.
I hope this helps!
Answer:
The statement is: False.
Explanation:
Business is one of the fields that require paperwork and reports to be transmitted seriously because of the type of information handled. <em>Inflation rates, the annual Gross Domestic Product (GDP) </em>or <em>a country's economic policy</em> are typical topics dealt in this field. For that reason, business writers <em>must be formal</em> without being afraid of using technical terminology where necessary.
