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Genrish500 [490]
3 years ago
7

Your sister is thinking about starting a new business. The company would require $300,000 of assets, and it would be financed en

tirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business
Business
1 answer:
Radda [10]3 years ago
5 0

Answer: $40,500

Explanation:

The company would be expected to make a net income of 13.5% of the amount invested in assets.

ROE = Net income / Equity

Net income = ROE * Equity

Assets are the same as equity in this scenario because the company is entirely funded by equity.

= 13.5% * 300,000

= $40,500

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Answer:

COGS= $81,146.88

Explanation:

Giving the following information:

Your company has sales of $93,600 this year and the cost of goods sold of $64,700. You forecast sales to increase to $ 117, 400 next year.

First, we need to calculate the percentual participation of cost of goods sold:

%COGS= 64,700/93,600= 0.6912= 69.12%

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3 years ago
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Cob.

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Explanation:

hopes this helps

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2 years ago
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