1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
maria [59]
3 years ago
10

This year Andrews achieved an ROE of 24.5%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, as

sets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE
Business
1 answer:
den301095 [7]3 years ago
5 0

Answer:

It would decrease

Explanation:

Return on equity is an example of a profitability ratio.

Profitability ratios measure the ability of a firm to generate profits from its asset

Using the Dupont formula, ROE can be determined using:

ROE = Net profit margin x asset turnover x financial leverage

ROE = (Net income / Sales) x (Sales/Total Assets) x (total asset / common equity)

If profit margin reduces and asset turnover and leverage remains the same, ROE would decrease

You might be interested in
NEED HELP ASAP, WILL GIVE BRAINLIEST
Sholpan [36]
What new laws to the New York factory investigating commissions request check all that apply

1. no factory workers under age 10
3. a minimum wage for all workers
4. increased sanitation standards
3 0
2 years ago
Task 3: Budget for 25- to 30-year-old Business Professionals
Eddi Din [679]

Answer:

Sample Budget

Salary Income $2515

Rent expense -$900

Food and groceries -$250

Entertainment expense -$85

Shopping -$45

Birthday Party gift -$12

Transportation expense -$150

Home maintenance cost -$320

Tuition cost -$121

Net savings = $632

Explanation:

The mid aged person who is age of 25 to 30 will have different expenses. He will have to budget his monthly income and routine expenses to identify the savings. The sample budget will include different types of household expenses that a person incurs to live. He might have to budget one off expenses such as party cost, gifts etc. He will have to keep track of groceries and food expenses.

3 0
3 years ago
A professor decides to save paper by posting her syllabus on the university's web-based course application program instead of pr
LenaWriter [7]

Answer:

<u>Feedback</u>

Explanation:

In this question there is an example of feedback. This communication model occurred because after receiving the e-mail, the students asked the teacher about the message received via e-mail.

When a message is sent to a recipient and answered, feedback occurs. This answer is important for clear communication and for measuring the effectiveness of a message.

4 0
3 years ago
Warnes Motors' stock is trading at $20 a share. Three-month call options with an exercise price of $20 have a price of $1.50. Wh
jek_recluse [69]

Answer:

B. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.

Explanation:

Given

Trading price = $20

Exercise price of call option = $20

Call option price = $1.50

Price increment = 10% to $22

It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.

An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.

Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.

Moving to the percentage increase;

This will be larger than 10%.

This is because when stock price increases by 10%, the value of the option will increase by more than 10%.

8 0
3 years ago
Comment down below if you go to Carroll High School in Monroe La
Ganezh [65]

Answer:

yesss but i graduated in 2017

6 0
3 years ago
Other questions:
  • ___ are written laws that establish certain courses of conduct that must be adhered to by the covered parties.
    10·1 answer
  • The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information:
    9·1 answer
  • Although you were not fortunate enough to get Chipper's Golf Resort stock [ticker symbol: CHPR] as an IPO, you are still thinkin
    5·1 answer
  • Most recent work on the history of leisure In Europe has been based on the central hypothesis of a fundamental discontinuity bet
    10·1 answer
  • 1. The level of prices and the value of money Suppose the price level reflects the number of dollars needed to buy a basket of g
    7·1 answer
  • A furniture manufacturer specializes in wood tables. The tables sell for $150 and incur $60 in variable costs. The company has $
    7·1 answer
  • In a large metropolitan market, it is relatively easy to set up a law office. The ease of entry explains why you will find hundr
    10·1 answer
  • If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would a. increase by
    11·1 answer
  • What is the rule for reporting the revenues and expenses of a company that is acquired partway through a fiscal year in the cons
    15·1 answer
  • If fixed costs are $10,000 and variable costs are constant at $1.00 per unit over the relevant range of output, what will the av
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!