In which scenario do most homeowners use the equity in their home?

Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca

Gre4nikov [31]

Answer:

0.11%

Explanation:

Given that

Earning before interest and tax = $560,000

Interest = $336,000

The computation of company's return on equity is shown below:-

So, the Earning before tax

= $560,000 - $336,000

= $224,000

Tax = $224,000 × 30%

= $67,200

Earnings after interest and taxes = Earning before tax - Tax

= $224,000 - $67,200

= $156,800

Asset turnover ratio = total revenue ÷ total assets

3.4 = $8,000,000 ÷ total assets

Total assets = 2,352,941.18

Equity ratio = 1 - debt ratio

= 1 - 0.40

= 0.60

Total Equity = equity ratio × total assets

= 0.60 × 2,352,941.18

= 1,411,764.71

Return on Equity = Net income ÷ Equity

= $156,800 ÷ 1,411,764.71

= 0.11%

6 0

3 years ago

Jessica has been asking questions throughout her sales presentation and received positive signals from her prospect.

zvonat [6]

Answer: expect the final close to be a natural part of the ongoing dialogue. (B)

Explanation:

From the question, Jessica has been asking questions throughout the sales presentation she was having and receiving positive signals as well from her prospect.

Since she has been having a great presentation and the audience has been responding positively to her, when she is almost ending the presentation, she should just expect the ending to be a natural part of the conversation. She doesn't need to work harder or do anything special to pass her message.

8 0

4 years ago

Read 2 more answers

Explain, using examples, the abuse of monopoly power as a market failure.

saw5 [17]

Answer:

Explanation:

A monopoly is a market structure where there is only one supplier of a product and many buyers. An example of a monopoly is Microsoft; it is a price setter in the market. Abuse of monopoly power can occur when a firm dominates the market meaning no competitors within the industry. This abuse could be in form of limiting output or setting higher prices to benefit from supernormal profits . This therefore leads to less choice for consumers.Over time, monopolies can become less innovative because they do not have competition and causing the market to fail and be inefficient; the price mechanism fails to take into account all of the costs and/or benefits of providing and consuming a good.

3 0

4 years ago

In a process costing system, the application of factory overhead usually would be recorded as an increase in: (CPA adapted) A. F

otez555 [7]

Answer: Factory overhead control

Explanation: Factory overhead is the account where the amount of cost incurred while manufacturing a product is recorded and no direct labour or material is recorded. When the manufactured goods are finished and produced they are recorded as expenses when the goods are sold as manufactured finished products.

All the expenses related to the factory are included in this account such as rent, utility, electricity, supplies, tools. Factory overhead is known as manufacturing burden or expenses.

7 0

4 years ago

Apt Adapt Inc. is formed to coordinate the design and delivery of projects and products to help communities cope with the effect

natali 33 [55]

Answer:

c) a benefit corporation.

Explanation:

A benefits corporation is the corporation that creates a positive impact on the society and its well being. The directors and the officers of this corporation would operate the business with the similar authority and behavior as done in the traditional corporation but the decision impact affect not only the shareholders but also the employees, customers etc

So as per the given situation, the correct option is c.

6 0

3 years ago