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OLga [1]
3 years ago
12

What does it mean if your net assets increase

Business
2 answers:
Bad White [126]3 years ago
5 0
When a company earns income, it becomes larger because net assets have increased. Even if a portion of the profits is later distributed to shareholders as a dividend, the company has grown in size as a result of its own operations.
jeyben [28]3 years ago
5 0

Answer:  When a company earns income

Explanation: the value of a company's assets minus its liabilities. It is calculated ((Total Fixed Assets + Total Current Assets) – (Total Current Liabilities + Total Long Term Liabilities)).

You might be interested in
The green giant has 4 percent profit margin and a 30 percent dividend payout ratio. The total assets turnover is 1.2 times and t
earnstyle [38]

Answer:

5.68%

Explanation:

The green giant has a 4% profit ratio

= 4/100

= 0.04

The dividend payout ratio is 30%

= 30/100

= 0.3

The total assets turnover is 1.2 times

The equity multiplier is 1.6

The first step is to calculate the return on equity

ROE= Profit margin×Total assets turnover×Equity multiplier

= 0.04×1.2×1.6

= 0.0768 or 7.68%

The next step is to calculate the Plowback ratio

b = 1-dividend payout ratio

b = 1-0.3

b = 0.7

Therefore, the sustainable growth rate can be calculated as follows

= ROE×b/(1-(ROE×b)

= 0.0768×0.7/(1-(0.0768×0.7)

= 0.05376/(1-0.05376)

= 0.05376/0.94624

= 0.05681

= 5.68%

Hence the sustainable rate of growth is 5.68%

3 0
3 years ago
what is an accurate description of the relationship between international business and domestic business
Verdich [7]

Domestic business refers to the business where economic transactions are conducted within the geographical boundaries of the one country. International business refers to the business where economic transactions are conducted across border with several countries in the world.

7 0
2 years ago
What does an operating system do?
AlladinOne [14]
C: It tells the computer how to use the software.
3 0
3 years ago
Read 2 more answers
Where can Jill get a sample contract to help her write the terms of a new contract?
eduard

Answer:

Google.

Explanation:

Google has everything.

5 0
3 years ago
The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 50
Alla [95]

Answer:

The actual output of the process is 140 per hour

Explanation:

The Bottleneck step is the one which assemble minimum number of chips per hour . Step 3 produces minimum number of chips (200 chips per hour). Therefore step 3 is the bottleneck step.

Since the steps are interlinked in sequence, the capacity of the process will be determined by the capacity of the bottleneck process. Therefore, effective capacity of the process = 200 chips per hour

Since utilization is 70% of effective capacity , the actual output  of the process = Utilization x Effective Capacity

= 0.7 x 200

= 140 per hour

Thus, the actual output of the process is 140 per hour

7 0
4 years ago
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