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3 years ago

The ________ measures the return on owners' (both preferred and common stockholders) investment in the firm.

Business

1 answer:

tatyana61 [14]3 years ago

5 0

Answer:

C) return on equity

Explanation:

The return on equity determines the financial performance of the company. It could be calculated by dividing the net income from the owners equity as according to the accounting equation, the owners equity could be find out by deducting the liabilities from the assets

So here the equity could be of both types i.e. common and preferred

Therefore the option c is correct

You might be interested in

Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The

hodyreva [135]

Answer:

$3,515

Explanation:

The computation of the catering supplies is shown below:

= Catering supplies per month + per job cost × expected number of jobs + per meal cost × expected number of meals

= $350 + $89 × 21 jobs + $9 × 144 meals

= $350 + $1,869 + $1,296

= $3,515

Since the question is asking for planning budget so we considered the expected units in terms of jobs and meals

8 0

3 years ago

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb

Pani-rosa [81]

Answer:

160

Explanation:

Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .

<u>Workings</u>

Annual demand = 8000

Ordering cost = $50

Holding cost = $20

Operating days = 250

Lead time =5 days

Re order point = Average daily usage * Average lead time

Average daily usage = 8000/250 = 32

Reorder point = 32*5 =160

3 0

3 years ago

Eat at State is considering buying a new food truck. It will cost $65,000, but is expected to generate $20,000 in sales over the

Afina-wow [57]

Answer:

It is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.

Explanation:

Since Eat at State is considering buying a new food truck, and it will cost $ 65,000, but is expected to generate $ 20,000 in sales over the next 4 years, and at the end of the 4th year, the truck will be sold to Eat Like a Wolverine in Ann Arbor for $ 10,000 (after taxes), and it will require $ 5,000 in additional Net Working capital that will not be recovered when the truck is sold, and the Dean of Food Services will only authorize the purchase if it is cash positive by the end of the 4th year, to determine, using the payback period method if the truck should be purchased and why, the following calculation must be performed:

-65,000 + 20,000 + 10,000 - 5,000 = X

-70,000 + 30,000 = X

-40,000 = X

Therefore, it is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.

3 0

2 years ago

Environmental factors that can directly affect your business

marysya [2.9K]

Answer:

Examples of environmental factors affecting business include:

Climate.

Climate change.

Weather.

Pollution.

Availability of non-renewable goods.

Explanation:

Hope it helps

4 0

2 years ago

Lion Company's direct labor costs for the month of January were as follows: What was Lion's direct labor efficiency variance? Se

lakkis [162]

Answer:

Direct labor time (efficiency) variance= $6,150 favorable

Explanation:

Giving the following information:

Lion Company's direct labor costs for the month of January were as follows:

Actual total direct labor-hours 20,000

Standard total direct labor-hours 21,000

Direct labor rate variance - unfavorable $3,000

Total direct labor cost $126,000

First, we need to calculate the standard direct labor hour cost.

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 126,000/20,000= 6.3

-3,000= (SR - 6.3)*20,000

-3,000= SR20,000 - 126,000

123,000/20,000= SR

6.15= Standard rate

To calculate the direct labor efficiency variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (21,000 - 20,000)*6.15

Direct labor time (efficiency) variance= $6,150 favorable

7 0

3 years ago