Answer: d. 3.82%
Explanation:
ROE = Net Income / Equity so Equity need to be ascertained.
1.75 = Total Assets/ Total Equity
Total Equity = Total Assets/ 1.75
1.33 = Revenue / Total Assets
Total Assets = Revenue / 1.33
= 320,000/1.33
= $240,601.50
Total Equity = 240,601.50/1.75
= $137,486.57
Old ROE = 10,549/ 137,489.57
= 0.07672582
= 7.67%
New ROE = (10,549 + 5,250) / 137,489.57
= 0.11491053466
= 11.49%
Difference = 11.49 - 7.67
= 3.82%
Snowballing her payments according to the highest interest rate or making fixed payments I'm not sure between those two
Answer: Price is $1
Explanation:
we can use the perpetuity formula to calculate the present value of a share, the present value of share represents the maximum amount that an investor would be willing to pay for a share
Dividends = 0.15 cents
required rate of return = 15%
Present value = 0.15 cents/0.15 = 1
Price =$1
Answer:
The correct answer is letter "C": Increase the price of electricity during peak times.
Explanation:
The best form to regulate the use of electricity during peak hours would imply increasing the price of the power service. This will cause people to use the utility moderately to avoid increasing their expenses. By demand law, <em>as long as the price increases, the quantity demanded tends to fall.</em>
