Answer: the ALSA management team must understand the importance of social media in their work because of globalization. People can work from one country to another country through social media. Through social media you can get answer to your problems at work quickly.
Explanation:
Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes
Explanation:
a. This is correct.
The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.
b. This is incorrect.
Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.
c. This is incorrect.
The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.
d. This is incorrect.
We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.
Explanation:
The bank runs the danger that just before the second year, the short-term interest rate will increase, increasing its Lending value, but leaving untouched the interest income the bank gets from either the Treasury bill.
Annual interest revenue of 0.04* $50 million= 2 million and annual interest costs for the bank (0.02)* $50 million= 1 million, between 2 per cent to 4 per cent for the Treasury note.
The bank makes a profit of $2 million – $1 million = $1 million. If the interest rate rises 1 percent, the bank’s profit falls to
((0.04)* $50 million) – ((0.03) * $50 million) = $500,000.
Answer:
For each one percent increase in the interest rate, amount of deposit increases by 11.145%
Explanation:
To obtain the amount rate at which deposit increase per percentage increase in interest rate ;
We obtain the slope Coefficient of the regression equation between the amoub of deposit and interest rate paid.
From the result of the analysis given ;
The slope Coefficient of X, interest rate % is 11.145
Hence, For each one percent increase in the interest rate, amount of deposit increases by 11.145%
