Answer:
15.00%
Explanation:
The formula to compute the return on equity is shown below:
Return on equity = (EBIT × 1 - tax rate) ÷ (total equity)
= ($140,000 × 0.75) ÷ ($700,000)
= ($105,000) ÷ ($700,000)
= 15%
It shows a relationship between the earning after tax and total equity in respect of assets required for the project so that the accurate return can come
Current profit maximization and target return are two strategies used by firms that are pursuing a profit pricing objective.
A profit-oriented pricing objective means that a company tried to earn maximum profit with every sale or service provided, and achieve long term business profits.
Current profit maximisation is a price setting objective in which organisation set a price for a product that will give maximum profits, cash flow or return in short term without considering long term.
Target return pricing is a method where the firm determines the price on the basis of a target rate of return on the investment.
The two strategies that a firm use while pursuing a profit pricing objective is current profit maximization and target return pricing.
Learn more about profit pricing objective here
brainly.com/question/15969466
#SPJ4
<span>the real exchange rate is greater than one and arbitrageurs could profit by buying oranges in Morocco and selling them in the U.S.</span>
Answer:
Fabiola pays 27.0963 dollars for 8.79877 gallons of fuel.
Step-by-step explanation:
We are given that,
Fabiola pays 357 pesos for 40 liters of fuel.
It is required to convert the amount in dollars.
Since, we know that,
1 peso = 0.0759 dollars
So, 357 pesos = 0.0759 × 357 = 27.0963 dollars
Moreover,
1 liter = 0.219969 gallons
So, 40 liters = 0.219969 × 40 = 8.79877 gallons
Thus, we get that,
Fabiola pays 27.0963 dollars for 8.79877 gallons of fuel.
Answer:
A
Explanation:
The privately-owned school system in Smalltown generates positive externality to members of SmalltownA good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
The free rider has caused a decline in revenues and did not cause the private market to undersupply education to the community
