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Sliva [168]
3 years ago
8

Company B has sales of $807,200, total assets of $768,100, and a profit margin of 6.68 percent. The firm has a total debt ratio

of 54 percent. What is the return on equity
Business
1 answer:
Juliette [100K]3 years ago
5 0

Answer:

15.26%

Explanation:

The computation of the return on equity is shown below;

We know that

Profit margin = Net income ÷Sales

So,  

Net income = ($807,200 × 6.68%)

= $53,920.96

Now  

Debt ratio = debt ÷ Total assets

Debt = (0.54 × $768,100)

= $414,774

We know that  

Total assets = debt + equity

equity = ($768,100 - $414,774)

= $353,326

Finally

ROE = Net income ÷ equity

=$53,920.96 ÷ $353,326

=15.26%

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lord [1]

Answer:

9.35%

Explanation:

Annual coupon amount = Coupon rate × Fave value of bond = 7% × 1,000 = $70.

Expected current yield = Annual coupon amount ÷ Current market price per bond = $70 ÷ $749.04 = 0.0935, or 9.35%.

Therefore, the expected current yield for the next year on this bond issue is 9.35%.

6 0
3 years ago
What is an advantage of taking out a long-term loan instead of a short-term
Naya [18.7K]

Answer:

A

Explanation:

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4 0
2 years ago
Draft an inquiry letter for purchase of 10 units of IBM P4 computers and 2 units of Lx 300 Epson printers to Kathmandu Computers
gtnhenbr [62]

Based on writing standards, the inquiry letter for purchase should begin with the sender's address and be written like a formal letter.

<h3>Structures of Letter of Inquiry.</h3>
  • The sender's address should be written at the beginning of the letter, followed by the receiver's address.

  • The letter must contain all the elements of the enquiring item, including their quantities.

  • There must be the date and address of the receiver included.

  • The letter's subject must be written clearly before the letter's content.

  • Ensure you provide the expected salutation at the beginning of the letter.

  • Write clearly and straightforward.

  • Provide reasons and inquiry descriptions.

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Hence, in this case, it is concluded that there are specific ways to write a good inquiry letter.

Learn more about Inquiry Letter here: brainly.com/question/4208084

4 0
3 years ago
Free cash flow describes the net cash provided by operating activities after adjusting for A : current liabilities. B : both cap
Nikolay [14]

Answer:

The answer is B, both capital expenditure and dividends paid.

Explanation:

In the Statement os Cash Flow, cash provided by operating activities fails to take into account that a company must invest in a new property, plant, and equipment and must maintain dividends at current levels to satisfy investors.

Free cash flow describer the net cash provided by operating activities after adjusting for capital expenditures and dividens paid.

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3 years ago
Carlotta Rodriguez purchased six bushes for $19.27 each, a porch swing for $88.22, and a gas grill for $321.77. She must pay the
puteri [66]
19.27+88.22+321.77=429.26

4.5+2=6.5

429.26 x 1.065 = 457.1619

Answer = $457.16
5 0
4 years ago
Read 2 more answers
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