answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Debora [2.8K]
2 years ago
9

A firm has a profit margin of 12 percent; total asset turnover of 0.55 and an equity multiplier of 2.2. What is the firm's ROA a

nd ROE?
Business
1 answer:
lutik1710 [3]2 years ago
6 0

Answer:

ROA = 6.6%

ROE 14.52%

Explanation:

profit margin = net income / sale = 12%

assets turn over = sales / assets = 0.55

equity mutiplier = assets / equity = 2.2

ROE = return on equity = net income / equity

ROA = return on equity = net income / assets

we use the fraction properties to get ROE and ROA

\frac{income}{sales} \times \frac{sales}{Assets} =\frac{income}{Assets} \\ 0.12 \times 0.55 = 0.066\\

ROA = 6.6%

We apply the same property to get ROE

\frac{income}{assets} \times \frac{assets}{equity} =\frac{income}{equity} \\ 0.066 \times 2.2 = 0.14252\\

ROE = 14.52%

You might be interested in
LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to
VladimirAG [237]

Answer:

$739.72 ≈  739.72

Explanation:

we can use an excel spreadsheet and the present value function to calculate the expected price of each bond ⇒ =PV(rate,nper,pmt,fv,[type])

  • fv = $1,000
  • pmt = $1,000 x 7.25% x 1/2 = $36.25
  • nper = 60
  • rate = 10% / 2 = 5%
  • present value = ?

=PV(5%,60,36.25,1000) = -739.72 since excel calculates the initial investment, it is always negative, so we just change the sign.

6 0
2 years ago
As a result of the organizing campaign at Champlain Products, the union obtained signed authorization cards from 41% of the empl
xz_007 [3.2K]

Answer:

Please see explanation below.

Explanation:

The next step is to conduct a secret ballot election which will be supervised by National Labor Relations Board (NLRB) as might be required by the employer-Champlain products inorder to obtain voluntary support from the employees that the union wants to represent. The reason being that the management might decided not to recognize the card checks practise on the basis that a union without a secret ballot election is not reliable hence employees that signed the card might have been intimidated or coerced by the union to do so.

Where the management refuses to recognize the card check that was signed by at least 41% of the employees it wants to represent, management would then request for secret ballot election where employees would be able to vote confidentially without coercion or undue influence from the union or co-workers.

5 0
2 years ago
A company has total assets of $1,000, current liabilities of $130, and total liabilities of $350. if debt is the only long-term
Len [333]
<span>long-term debt=Totol liability-Current liability long-term debt=$350-$130 =$220 long-term debt ratio=long term debt/ total assets =$220/$1,000 =22% so long term debt ratio is 22%</span>
6 0
2 years ago
Which option is most likely a complementary good for a smartphone?
Elodia [21]

Answer:

A.

Explanation:

A. Smartphone headphone is the correct answer, because complementary goods are goods that sell together so, smartphone and headphones are complementary goods.

6 0
2 years ago
Read 2 more answers
"suppose a company did $3,000,000 in annual maintenance in 2013 and expects 85% of those to renew for 2014. suppose sales for 20
slavikrds [6]
Using the formula to calculate the total cost:

Cost = (85% x 3 million) + (60% x 3 million) + (20% x 3 million)

Cost = (0.85 x 3 million) + (0.60 x 3 million) + (0.20 x 3 million)

<span>Cost = (2.55 million) + (1.8 million) + (0.6 million)
Cost = 4.95 millions.
</span>
6 0
2 years ago
Other questions:
  • Both ________ and ________ increase as the safety inventory is increased.
    8·1 answer
  • Tonya's budget constraint for gallons of gasoline (G) and shirts (S) each month can be expressed by the equation G = 100 – 2S, w
    12·2 answers
  • Wright Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,000 units. It is estimated
    8·1 answer
  • The Athletic Department of Leland University is considering whether to hold an extensive campaign next year to raise funds for a
    10·1 answer
  • You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to
    11·1 answer
  • Northern purchased the entire business of Southern including all its assets and liabilities for $2,400,000 on December 31, 2021.
    11·1 answer
  • Derick works as a researcher and market analyst for a company. His current responsibility is to forecast the company's sales. He
    14·1 answer
  • Horton Company uses a normal costing system. Factory overhead is allocated on the basis of labor hours. At the beginning of the
    10·1 answer
  • Joan Johnson is a paralegal for a large law firm that handles corporate and securities work. The lawyer for whom Joan works alwa
    11·1 answer
  • A company sold merchandise with a cost of​ $217 for​ $390 on account. The seller uses the perpetual inventory system. The entry
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!