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sleet_krkn [62]
2 years ago
10

A firm has a return on equity of 20 percent. The total asset turnover is 2.8 and the profit margin is 7 percent. The total equit

y is $6,000. What is the net income
Business
1 answer:
kondor19780726 [428]2 years ago
4 0

The net income of the firm is $1,200

<h3>What is net income?</h3>

Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes.

Net profit is also amount of money a business earns after deducting all operating, interest, and tax expenses over a given period of time.

First, we know that:

Return on equity

= Net income / Total equity

Fixing the given values, we'll have

20% = Net income / $6,000

Net income = $6,000 * 20%

Net income = $1,200

Therefore, net income of the firm is $1,200

Learn more about computation of net income here: brainly.com/question/24836146

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Who are decision makers within organizations? (Check all that apply.)
dedylja [7]

Answer: Consultants

Explanation: They give their ideas and the company works according to that. If the company managers take decisions that suits them the employees and owners will adhere but the consultants might turn it down which affects the company immensely.

6 0
3 years ago
A decision-maker faces the following decision under conditions of uncertainty. This decision-maker has $1 million in assets. Mos
denis-greek [22]

A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.

C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.

  • The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below

\rm Net\ earnings= claim\ received - premium\ of\ policy

\rm Net\ earnings= 750000-40000

We get,

\rm Net\ earnings= 710000

  • If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that <u>risk cannot be taken.</u>

  • In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.

Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.

To know more about insurance policy , click the link below.

brainly.com/question/24984403

6 0
2 years ago
Read 2 more answers
If a business has a negative cash flow, the revenue must be _____ operating expenses.
Vlad [161]
<h3>Answer :</h3>

<em>Less than</em>

(If a business has a negative cash flow, the revenue must be less than operating expenses.)

7 0
2 years ago
स्थीर आय प्रतीभूति भनेको के हो​
vlada-n [284]

Answer:

aba gaba lubbu esai naue

Explanation:

7 0
2 years ago
What is the process where a business takes raw materials and processes them or converts them into a finished product for its goo
sashaice [31]

Answer:

Material processing

Explanation:

Materials processing can be said to the series of operations that transforms industrial materials from a raw-material state into finished parts or products.

3 0
3 years ago
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