Answer:
total debt ratio = 0.3532
Explanation:
given data
total assets = $485,390
net fixed assets = $250,000
current liabilities = $23,456
long-term liabilities = $148,000
to find out
total debt ratio
solution
we get here total debt ratio that is express as
total debt ratio = ( current liabilities + long-term liabilities ) ÷ total assets ........1
put here value we get
total debt ratio = 
total debt ratio = 0.3532
Answer: a. Residual income, like ROI, can encourage a short run orientation
Explanation:
Residual incomes presents the same problem as ROI measurement, The problem of myopic behaviour or short run orientation
The manager may cut expenses like advertising expenses, maintenance expenses , training expenses when being evaluated under residual income or ROI to reflect a favourable residual income or return on investments, The problem Managers being short run orientated is not eliminated or minimized by change methods between ROI and Residual income.
<span>She owns common stock. This allows a person to acquire dividends that change in their amount and might be missed depending on the fortunes of the company. Holding this stock allows a person to elect the board of directors and vote on corporate policy.</span>
Answer:
1.08
Explanation:
The computation of the portfolio beta is shown below:
Portfolio beta is
= Invested stock percentage × beta of the stock + Invested stock percentage × beta of the stock + Invested stock percentage × beta of the stock
= 0.50 × 1.50 + 0.30 × 0.90 + 0.20 × 0.30
= 1.08
We simply applied the above formula so that the portfolio beta could come and the same is to be considered
