Answer:
11.30%
Explanation:
Roten rooters have an equity multiplier of 1.52
The total assets turnover is 1.20
The profit margin is 6.2%
= 6.2/100
= 0.062
Therefore the ROE can be calculated as follows
= 0.062× 1.52×1.20
= 0.1130×100
= 11.30%
Hence the ROE is 11.30%
Answer:
Present value of lease payments is $17720.57
Explanation:
The value of lease payments can be treated as an annuity due as the lease payments qualify the criteria of annuity- the payment amount is constant, is paid after a constant interval of time and the time is definite and known.
So, we will use the formula for the present value of annuity due as the payments are being made at the start of the period. The formula for the present value of an annuity due is attached.
PV of lease = 3600 + 3600 * [ {1 - (1 + 0.17)^-(8-1)} / 0.17 ]
PV of lease = $17720.56848 rounded off to $17720.57
Answer: FALSE
Explanation: The Western nations like the United States of America and other developed countries of the world has constantly criticize Human rights violations in China and other countries of the world.
Economic progress does not lead to totalitarian Government or regimes, many counties in Europe and the United States of America have made economic progress and are economic powers of the world but they have not adopted the totalitarian System.
Answer:
C. Business entity principle
Explanation:
- A business entity principle is one that states the transactions that are linked to a business must have a separate record-keeping and form those who are owners of the other business.
- Thus separates the records for the organization of the business and excludes the assets and the liabilities of the other owners of the business.
Answer:
The answer is 6.17%.
Explanation:
We apply the Dividend Model for solving the questions.
Denote g as the constant dividend growth rate after 3 years which needs to be found.
The principle in the Dividend model is: Current share price = Projected present value of all expected future dividend discounted at company's cost of equity rs =16%.
Thus Current share price = Present value of Dividend paid in Y1 + Present value of Dividend paid in Y2 + Present value of Dividend paid in Y3 + Present value of dividend perpetuity growth after Y3.
=> 51 = (3 x 1.25) / 1.16^1 + (3 x 1.25^2)/ 1.16^2 + (3 x 1.25^3)/1.16^3 + [3 x 1.25^3 x (1+g)]/(0.16-g)/1.16^3 <=> [5.8594 x (1+g)]/(0.16-g)/1.16^3 = 40.5298 <=> [5.8594 x (1+g)]/(0.16-g) = 63.2628 <=> 5.8594 + 5.8594g = 10.1220 - 63.2628g <=> 69.1222g = 4.2626 <=> g = 6.17%.
Thus, the constant rate the stock's dividend expected to grow after Year 3 is 6.17%
