In 2016, Bubble Inc. had net income of $500,000, assets of $5,000,000, sales of $2,000,000, and debt of 2,000,000. In 2017, Bubb
victus00 [196]
Answer:
No
Explanation:
The computation of the return of assets is calculated by applying the formula which is shown below:
Return on assets = Net income ÷ assets
In 2016, the return on assets would be equal to
= $500,000 ÷ $5,000,000
= 0.1
In 2017, the return on assets would be equal to
= $600,000 ÷ $7,000,000
= 0.085
By comparing the return on assets for both the years, we get to know that the return on assets is declining from 2016 to 2017
Answer:
P=$40
Explanation:
We will apply constant dividend growth model that is =P = D1 / ( k-g )
P is the price of share ?
D1 is the current divided $2
k is the rate of return 9%
G is the constant growth 4%
P=2/(9%-4%)
P=$40
D.) Whether to order a pepperoni or a cheese pizza is a decision that cannot be made at the margin.
Making decisions at a margin is merely considering an option on top of your made decision. Cost and Benefit is a factor in thinking in a margin.
You have already decided to move. Your marginal decision is whether to move to Boston from Chicago,
You have already decided to spend the day on Saturday. Your marginal decision is whether to watch a movie or go hiking.
You have already decided to have a two-week vacation. Your marginal decision is whether to spend it on the shore or in town.
You have decided to order a pizza. Any flavor of pizza will still make you spend money. So there is no marginal decision needed.