Answer:
The return on equity for 2017 is 21.46 %
Explanation:
Return on equity measures the return earned on the owners investment in the company.
<em>Return on equity = Net Income for the year / Total Shareholders Funds × 100</em>
= $822 / ( $2,980 + $850) × 100
= 21.4621 or 21.46 %
Note : That Retained earning is part of Owners Investment.
Conclusion :
The return on equity for 2017 is 21.46 %
Answer:
Explanation:
Customer orders for last year were 15000
Order for next year with 15% increase = 15000 x 1.15 = 17250
It takes 1.5 hours to fill a customer order
Cumulative amount of time required to fill customers order = 17250 x 1.5 = 25875
Given that standard work year = 2000 hours
Therefore , effective work year with 2 % capacity cushion
= Standard work year x ( 1 – Capacity cushion %/100)
= 2000 x 0.98 = 1960 hours
Number of workers needed by manager
= Cumulative amount of time required to fill customers orders / effective work year
= 25875 / 1960 = 13.20 which is 13 (rounded)
Manager will need 13 workers nex year
Answer:
the risk premium = return of the deposit - risk free deposit return
risk premium = 5.2% - 2.5% = 2.7% or $27 for a $1,000 CD
Besides the investment risk, Casey must also consider the inflation rate and taxes. The inflation rate lowers the real interest earned by Casey: real interest rate = nominal interest rate - inflation rate. And she must also find out how the return from the non-financial institution is taxed, if it can be taxed as capital gains or regular income.
