Answer:
DuPont Equation
The three factors that directly affect a company's ROE (Return on Equity) are:
1. Profit margin
2. Total asset turnover
3. Equity multiplier
Explanation:
The profit margin measures the operating efficiency of the company with higher sales leading to higher profit margins.
The total asset turnover is a financial measure that divides turnover by the total assets. It shows the efficiency achieved in the use of assets to generate sales revenue.
The equity multiplier measures the financial leverage of the company. It shows how the use of debts increases the value of the company's equity.
Answer:
The indifference point is 50,000 units.
Explanation:
Giving the following information:
Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9.
First, we need to determine the total cost formula for each location:
Location I:
Total cost= 100,000 + 10x
Location J:
Total cost= 150,000 + 9x
Now, to calculate the indifference point, we need to isolate X:
100,000 + 10x= 150,000 + 9x
x= 50,000 units
The indifference point is 50,000 units.
Answer: type z firm
Explanation: In simple words, type Z firm refers to the firm structure under which the management of the organisation focuses on factors like employment stability, high productivity and high satisfaction and morale of employees.
The firms employing such structure believes that employees are the most important resource and without their satisfaction operational effectiveness and stability cannot be achieved.
Answer: conflicts that arise in corporations should be addressed in the legal realm(A)
Explanation:
The principal-agent problem is an important part of the agency theory, the principal-agent problem views the firm as a connection of legal contracts.
In this perspective, corporations are seen merely as set of legal contracts that exists between the different parties. The conflicts that may take place are to be addressed in the legal realm.
<span>They were involved in dumping, which is a technique specially used in international trade where producers sell their product under the cost of production in another country, therefore, losing money, in an effort to increase their market share and create a monopoly of the sales. It's very unfair and disloyal</span>
