The uncontrollable issue of _____ faced by a company abroad is often amplified by the "alien status" of the company, which incre
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Answer: Jack Corp's D/E ratio is 0.67.
We follow these steps to arrive at the answer:
We begin with the DuPont Identity for Return on Equity (RoE)
Substituting the values from the question in the DuPont identity we get,
So,
Substituting the value of equity multiplier in the formula above we get,
Now,
So,
Now that we have the proportions of debt and equity to total assets, we can find the Debt Equity (D/E) ratio as follows:
Substituting the values we get,
Answer:
The rate of return to an investor in the fund=0.088*100=8.80%
Explanation:
Given Data:
NVA at the start of the year==$12.50
NVA at the end of the year=$12.10
Distributions of income and capital gains =$1.50
Required:
The rate of return to an investor in the fund=?
Solution:
Rate of return=
The rate of return to an investor in the fund=0.088*100=8.80%