How can the amount of us currency in circulation be so much higher than the amount held by the u.s?

The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals i

mamaluj [8]

Answer:

Pelican's debt ratio 9%

Timberland's debt ratio 50%

The times interest earned ratio for Pelican 57.5

The times interest earned ratio for Timberland 10.45

C is correct as Pelican has 57.5 times interest earned ratio while Timberland only 10.45 times.in other words,earnings of Timberland is more volatile.

D is also correct ,since it has financial leverage of 50.46% as against Pelican financial leverage of 9.17%

The operating margin for Pelican is 14.76% while the operating margin for Timberland is 13.8%

Return on total assets for Pelican is 36.9% and that of its competitor is 34.5%

The return on equity for Pelican 40.6% and that of Timberland is 69.6%

C is correct as Pelican is more profitable than Timberland as shown by the higher net profit margin and return on assets

B is correct, even though Pelican is more profitable (higher net profitmargin), Timberland has a higher ROE than Pelican due to the additional financial leverage risk.

Explanation:

All of the ratios requested for are found in the attached spreadsheet.

Download xlsx

3 0

3 years ago

When joshua proposed cross-training his employees so absences and vacations would not pose such a problem in productivity, his

natulia [17]

Answer:

a. fear that they would be forced out of their habits

Explanation:

In as much as the aim is for absences and vacations not to pose a problem in productivity, Joshua's employees still objected because they might one day be told not to go on vacations and not even be absent from work. Thus, this becomes a problem for them.

Therefore the fear that they would be forced out of their habits sets in and they object the proposal.

5 0

3 years ago

Read 2 more answers

Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 233 units of output. At

Anika [276]

Answer:

Continue operating; $699

Explanation:

The equilibrium price is $10.

MR = MC at 233 units of output.

At this output level, ATC is $12, and AVC is $9.

The AFC or average fixed cost

= ATC - AVC

= $12 - $9

= $3

The total fixed cost

= $AFC\ \times Q$

= $\$ 3\ \times\ 233$

= $699

The equilibrium price is able to cover the average variable cost so the firm should continue production in the short run.

4 0

4 years ago

On January 1, 2018, Green Corporation purchased 34% of the outstanding voting common stock of Gold Company for $300,850. The boo

arsen [322]

Answer:

Total Green's Investment 329,607.8

Explanation:

Book Value 275,200

Goodwill 25,650

First we calculate the goodwill, which will be amortize over 5 years

$\frac{goodwill}{useful \: life} = amortization \: per \: year$

Amortization of Goodwill 25,650/5 = 5,130

Goodwill at December 31th 20,520

Next we use proportional equity to adjust the Green's book value Our proportion is 34%

Book Value 275,200

+ 34% of net income 125,120 = 42,540.8

-34% of cash dividends 25,450 = (8,653)

Book Value at December 31th 309,087.8

Book Value at December 31th 309,087.8

Goodwill at December 31th 20,520

Total Green's Investment 329,607.8

6 0

4 years ago

The amount of money $20,000 is loaned for a period of time 6 years 9 months along with the simple interest $14,200 charged. dete

Naily [24]

A = P(1 + rt)

Where: A = Total Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

r = Rate of Interest per year in decimal; r = R/100

t = Time Period involved in months

From the question given,

A = $34, 200

P = $20,000

I= $14,200

r = ?

T = 6 years, 9 months = 81 months

Substituting the original equation for r:

r = (1/t) (A/P - 1)

Solving our equation:
r = (1/81)((34200/20000) - 1) = 0.00876543
r = 0.00876543
Converting r decimal to R a percentage
R = 0.00876543 * 100 = 0.8765%/month

R = 0.8765% per month

Calculating the annual rate
0.8765%/month × 12 months/year = 10.518%/year.

7 0

3 years ago