The return on equity(ROE) is 0.1
The parameters given in the question are
Net income= $5 million
Shareholder's equity= $50 million
The formular for return on equity is
The return on equity can be described as the ratio of the net income an shareholder's equity
The formula for ROE can be written as follows;
= Net income/Shareholder's equity
= 5 million/50 million
= 0.1
Hence the return on equity(ROE) is 0.1
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Answer:
B. Negative, Negligible
Explanation:
Interest Rate is negatively related to Investment. Higher Interest Rate increases cost of investment, lower interest rate reduces cost of investment.
However, Investment in a particular sector/ industry is also defined by: Concentration of that sector in entire investment outlay & Income Elasticity of the sector's commodity demand. Implicatively, a sector with huge concentration of investment outlay & products with high income elasticity will have more Interest rate sensitive Investment and vice versa.
Construction Industry being very capital intensive has higher investment magnitude & also more Income Elastic demand. So, impact of higher interest rate will impact this industry more.
Necessity goods Industries are less capital intensive , investment concentrated & also have less Income Elastic Demand. So, impact of higher interest rate will impact this industry less.
<em>(Demand's Income Elasticity is the responsiveness of a good's demand to change in Income. It is more in luxurious goods, less in necessity goods)</em>
Answer:
NSB Co. won the case against Mid-American oil/Mid-American oil lost the case
Explanation:
The original contract clearly stipulated that any modifications to the contract were to be written and signed by the company's presidents, therefor the decision by the Mid-American executive to talk with the purchasing agent of NSB Co. was in breach of the contract in two aspects;
- The parties that made the modifications were not the ones agreed to in the contract
- They made the modifications verbally while the contract stated that the changes were to be written and signed
Answer:
Planning gap.
Explanation:
Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
The planning gap can be defined as the gap between "where we are now?" and "where we want to be?"
Basically, "where are we now?" describe the current situation of things or financial and non-financial activities that a business firm currently holds.
On the other hand, "where we want to be?" is a vision and mission statement that focuses on achieving the goals and objectives set for a business firm.
Answer:
The correct option is B
Explanation:
Credit union is the financial cooperative which is a not for profit and it is owned by the members, who want to contribute to the pool of deposits of the credit union and to gain access to the financial services.
It offers same kind of services likes banks which involve CD (Certificate of deposits), mortgages, savings and checking accounts and loans.
The motive or the aim of joining the credit union could be sell the stock of the organization in the financial market.