All categories

2 years ago

Higher debt utilization ratios will always increase a firm's return on equity given a positive return on assets.

Business

1 answer:

Nikitich [7]2 years ago

6 0

Answer:

A. True

Explanation:

The debt utilization ratios is used to determine the comprehensive picture for the long term financial health of the company or the solvency of the company.

The debt ratio is defined as the financial ratio which shows the percentage of the assets of an organization which are provided through a debt. When the ratio is higher, the risk involved with the operation of the firm is more.

Thus, for a high debt utilization ratio, it will always increase the return of the organization on the equity for a positive return on the assets of the organization.

Thus, the answer is TRUE.

You might be interested in

Acellus Businesses management

Kobotan [32]

Here is the answer

https://www.science.edu/Acellus/curriculum/career-technical-education-courses/lesson-lists/Business%20Management%20Curriculum.pdf

7 0

2 years ago

rental apartments and private homes are examples of what? complementary goods, alternativebgoods, neutral goods, simultaneous go

denis-greek [22]

PLATO ANSWER: Alternative Goods

Hope this helps! I got it correct also so I know its correct!

5 0

2 years ago

The average annual return over the period 1926-2009 for the S&P 500 is 12.0%, and the standard

arsen [322]

Answer:

C) -30.6%, 54.6%

Explanation:

95% Confidence Interval = (Average Return - 2*Standard Deviation, Average Return + 2*Standard Deviation)

=(0.12 - 2*0.213, 0.12 + 2*0.213)

= -30.6%,54.6%

Therefore, The 95% confidence interval for 2010 returns is -30.6%,54.6%.

5 0

2 years ago

Restaurant A uses 60 bags of tomatoes each month. The tomatoes are purchased from a supplier for a price of $80 per bag and an o

ch4aika [34]

Answer:

Explanation:

D = 60 bags

cost = 80 / bag

s = 20 / order

h = 40% of cost

0.4 * 80 / 100

h= 32 unit/year

D = d * 12 months

D = 60 * 12

D = 720 bags / year

EOQ = $\sqrt{2DS/H}$

EOQ = $\sqrt{2 *720*20/32}$

EOQ = 30 bags

Total cost = Total holding cost + total ordering cost

Total holding cost = (Q/2 * H) = (30/2 * 32) = 480

Total ordering cost = (D/Q * 20) = (720/30 *20) = 480

Total cost = 480 + 480 = 960

Total purchasing cost = cost * D = 80 * 720 = 57.600

Percentage= total cost / total purchasing cost * 100

960 / 57.600 * 100

1.67 %

6 0

3 years ago

Benjamin, Inc., operates an export/import business. The company has considerable dealings with companies in the country of Camer

timurjin [86]

Answer:

the picture attached is the main question while the solution is given in the explanation box below

Explanation:

2017 = Loss = 25000 * 8 * [0.42-0.50] = 16000

2018 = Gain = 25000 * 8 * [0.50-0.43] = 14000

2017 = gain = 25000 * 8 * [0.48-0.42] = 12000

2017 = Loss = 25000 * 8 * [0.48 - 0.50] = 4000

2018 = Gain = 25000 * 8 * [0.50-0.43] = 14000

4 0

2 years ago