Which of the following best explains why buying a single-family home in a city

Last year Electric Autos had sales of $165 million and assets at the start of the year of $280 million. If its return on start-o

ohaa [14]

Answer: 16.9697%

Explanation:

Sales = $165 million

Assets in beginning of year = $280 million

Assets return on start of the year = 10%

$Return\ on\ Net\ Assets =\frac{Operating\ Profit}{Net\ Assets}\times 100$

$\frac{Return\ on\ Net\ Assets\times Net\ Assets}{100} =Operating\ Profit$

$\frac{10\times 280}{100} =Operating\ Profit$

Operating Profit = 28

$Operating\ Profit\ Margin = \frac{Operating\ Profit}{Sales\ revenue}$

$Operating\ Profit\ Margin = \frac{28}{165}\times 100$

= 16.9697%

8 0

3 years ago

Enscoe Enterprises, Inc. (EEI) has 220,000 shares authorized, 180,000 shares issued, and 20,000 shares of treasury stock. At thi

son4ous [18]

Answer:

Enscoe Enterprises, Inc. (EEI):

a) Number of shares of stock outstanding is 160,000 shares (180,000 minus 20,000).

b) The book value per share = (value of common stock plus retained earnings) divided by outstanding shares

= $(400,000+ 240,000)/160,000 = $640,000/160,000 = $4 per share

c) The book value per share represents how the equity shares are valued in the company's accounting records. This may not be similar to the market value per share. The market value per share is determined by market sentiments, which cannot be historically accounted for as the book value is.

The book value per share can be compared to the market value per share to determine if a stock is overvalued or undervalued.

At liquidation, the book value per share represents what each shareholder would get if all the assets are sold and liabilities liquidated. But, the market value per share is what the investor gets if she sells the stock in the market without waiting for the company to be liquidated.

Explanation:

a) Treasury Stock is a contra account to the Common Stock. When stock is repurchased it reduces the issued shares by the number. It is only the outstanding stock that has equity interest in the entity.

b) The book value per value is the net worth of the company divided by the number of outstanding shares. It shows the net assets value per share. The net assets are the total assets minus the total liabilities. It is the same thing as Equity or the interests of equity stockholders in the company.

5 0

3 years ago

Indicate whether a change in the value of each of the following determinants of demand leads to a movement along the demand curv

Marizza181 [45]

Answer:

movement along the demand curve: i

shift in the demand curve: ii, iii, iv, vi

no effect: v

Explanation:

A change in the price of the product causes quantity demanded to change. It will be indicated by a movement on the same demand curve.

A change in other factors will cause the demand for the product to change. It is indicated by a shift in the demand curve.

i. Change in the market price: movement along the demand curve

ii. Change in income: shift in the demand curve

iii. Change in consumer expectations: shift in the demand curve

iv. Change in the price of a related good: shift in the demand curve

v. Change in the price of an unrelated good: no effect

vi. Change in preferences for this good: a shift in the demand curve

3 0

3 years ago

Toby’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is

Ne4ueva [31]

Answer:

Toby is not maximizing his utility because MUp/Pp > MUc/Pc

Explanation:

given data

marginal utility consuming peanuts = 100 utils per ounce

marginal utility consuming cashews = 200 utils per ounce

peanuts cost = 10 cents per ounce

cashews cost = 25 cents per ounce

solution

we know that Toby will have maximize utility when here

Marginal utility of peanut ÷ price of peanut = Marginal utility of cashew ÷ cash ..........................1

MU (p) ÷ P (p) = MU (c) ÷ P (c)

put here value

$\frac{100}{10} = \frac{200}{25}$

but here

10 > 8

so we can say Toby is not maximizing his utility because MUp/Pp > MUc/Pc

8 0

3 years ago

Read 2 more answers

Question Workspace Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week (millions of gallons) Price per gallon 6

Lena [83]

Answer:

20 million gallons

Explanation

The market quantity supplied can be found by adding the quanirty supplied of the 5 suppliers.

When price is $1.5, tucker supplies 3 million gallons

3 + 10+2 + 5 + 0 = 20

I hope my answer helps you

5 0

3 years ago