Answer:
The correct answer is II. How many dollars of assets have been acquired per each dollar in shareholders' equity?
Explanation:
The DuPont identity shows a firm's Return On Equity (ROE) as a function of three ratios that work as variables: a) the profit margin, b) the total asset turnover and c) the equity multiplier.
The second ratio (total asset turnover) measures the asset use efficiency and can be thought of as the result of total assets divided by shareholder equity.
Answer:
True
Explanation:
The British crown asked for huge funds and so borrowed massively from the Dutch and British bankers so that the war can be bankrolled, and this in turn impacted heavily and increased the British national debt.
The French and Indian war ended in 1763 and George William Frederick (King George III) brought in British army in the Americas for them to permanently stay there and defend the newly won territories from possible future attacks. This arrangement required huge funds to maintain.
Answer: C. foreign goods to be more expensive to residents of foreign nations
Explanation: When the dollar price rises in a country that the official currency is not the dollar, purchase of foreign goods becomes expensive.
For example, if in a country like Nigeria, 1 dollar equals 360 Naira and a resident has been purchasing goods outside Nigeria using the dollars, if 1 dollar increases to 400 naira, that becomes more expensive for the Nigerian (foreigner). Because the Nigerian now have to cough out 400 naira for 1 dollar as against the for 360 naira for 1 dollar.
