Answer:
Pb R
atio:
For company A = 2.375
For company B = 1.5
Explanation:
As per the data given in the question,
ROPI = NDA (RNOA - WACC)
For Company A 100 × (21%-10%)
For Company B 100 × (14%-10%)
Present value of ROPI = (ROPI ÷ (1+WACC)) ÷ [1-(1+g) ÷ (1+WACC)]
For Company A = (11 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $137.50
For Company B = (4 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $50
Market value of equity = NOA + present value of ROPI
= $100 + 137.50 = $237.50(Company A)
= $100 + $50 = $150(Company B)
Pb Ratio = Market value of equity ÷ Book value of equity
For company A = $237.50÷100 = 2.375
For company B = $150÷100 = 1.5
(a)As per Du-Pont equation:
Return on Assets (ROA) = Net profit margin * Total assets turnover
9.8% = 12.25% * total asset turnover
Total asset turnover = 0.098/0.1225 =0.8
Total asset turnover = 0.80
(b) As per Du-Pont equation:
ROE = Net profit margin * total asset turnover 8 * Equity Multiplier
18.25% = 12.25%*0.8* Equity Multiplier
Equity multiplier = 0.1825/(0.1225*0.8) = 1.86
Equity multiplier = 1.86 times
Answer:
False
Explanation:
According to federal regulations each IRB shall have at-least 5 members, further, there shall be at-least one member with scientific expertise and one member with no expertise in science.
Total number shall not fall below 5 members.
Here it states, to have at-least two members are require to fulfill the requirement of membership. Thus, the above statement is false.
In case it is talking about only about the character being scientific expertise or not then it is true.
But total members are 5 and not 2 thus statement is false.
The answer to this question is c <span>The banks must have weighed the cost of installing bandit barriers against the benefits and
decided that they have “no interest in ever putting in the barriers.”
Hope this helps!!
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