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1 year ago

Which financial leverage ratio is used with two other ratios to mathematically produce the return on equity ratio?

Business

1 answer:

ipn [44]1 year ago

5 0

Answer: c. Total Assets/ Equity

Explanation:

To measure the Return on Equity with 3 ratios, the DuPont Analysis can be used. This is a technique of deconstructing the Return on Equity ratio into various constituent ratios so that their effect on Return on Equity is better know.

The basic DuPont Analysis is;

Return on Equity = $\frac{Net Income}{Revenue} * \frac{Sales}{Total Assets} * \frac{Total Assets}{Equity}$

Total Assets/ Equity or the Assets to Shareholder Equity ratio is the answer.

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Packages arrive at a facility at a rate of 30 per hour and are processed continuously at a rate of 25 per hour. The facility is

soldi70 [24.7K]

Answer:

1.6 hour

Explanation:

Given

Rate of Arrival =30 per hour

Rate of Processing = 25 per hour

Open Time = 8am

Close Time = 4pm

How long the last package has to wait before it is processed is calculated by;

Duration = ∆Time/∆Rate

∆Time = 4pm - 8am

∆Time = 8 hours

∆Rate = Rate of Arrival - Rate of Processing

∆Rate = 30 - 25

∆Rate = 5 per hour

Duration = 8 hours ÷ 5 per hour

Duration = 1.6 hours

3 0

2 years ago

Beacon company is considering automating its production facility. the initial investment in automation would be $15 million, and

marin [14]

Additional Information:

Net Operating Income before investment $1,710,000

Net Operating Income After investment $2,690,000

Answer:

12.65%

Explanation:

Now the project's accounting rate of return can be calculated using the following formula:

Accounting rate of return = Average Project Net Income / Avg. Investment

Here

Average Project Net Income is $980,000 per year (Step1)

and

Average investment is $7,750,000 (Step2)

By putting values, we have:

Accounting rate of return = $980,000 / $7,750,000 = 12.65%

Step1: Average Project Net Income

The relevant cash generated due to additional sales is the difference of the net operating income before investment and after investment, which is:

Investment Profit per year = $2,690,000 - $1,710,000 = $980,000 per year

Step2: Average Investment

Average Investment = (Initial Investment + Residual Value) / 2

Here

Initial Investment is $15 million

and

Residual Value is $0.5 million

So by putting values, we have:

Average Investment = ($15 million + $0.5 Million) / 2 = $7.75 million

6 0

2 years ago

Cody Barnett enjoys several advantages as a Sonic franchisee. Which of the following is NOT an advantage of franchising?

Alenkasestr [34]

Option E is correct. The management regulation is not an advantage of franchising.

Further Explanation:

Franchise: Franchising is a form of business where the franchisor (who has an established brand name) gives the right to the franchisee to use its trademark, products, services, and also provide training and assistance for operating the business. The advantages of the franchising are:

• Marketing and Management assistance: The training is provided by the franchisor to the franchisee on how to carry on the business and also provide marketing assistance.

• Personal ownership: The franchisee is the owner of the business in the territory of which is he /she purchased the rights. He pays the royalty for the right purchased

• Nationally recognized name: The franchisor's business usually has a global presence, so it is nationally recognized.

• Financial advice and assistance: The franchisor provides financial assistance and advice to the franchisee so that the business can maintain its brand name.

• Lower failure rates: Since the franchise has a global presence and brand position, so chance of failure is lower.

Therefore, the management regulation is not a benefit of franchising because the franchisee cannot change the way management is being done, although the business is owned by the franchisee.

Learn more:

1. Learn more about the management resource activity

brainly.com/question/10700933

2. Learn more about the management charactistics

brainly.com/question/10649225

3. Learn more about customer relationship management

brainly.com/question/6657146

Answer details:

Grade: High School

Subject: Business

Chapter: International business

Keywords: Cody Barnett, Sonic franchise, management assistance, personal ownership, lower failure rate, management regulation, nationally recognized name.

7 0

2 years ago

Read 2 more answers

Which process helps in progressive improvement of requirements?

kupik [55]

Answer:

The Scrum review and retrospect process

Explanation:

Scrum software organizes teams of software developers in order to create a product.

One of the main activities involved in the review and retrospect process is Convene Scrum of Scrums. This is specially useful for larger projects where multiple Scrum teams collaborate together. Members of each team meet and track their respective progress, impediments, and dependencies across teams.

6 0

2 years ago

g A project has an initial cost of $6,900. The cash inflows are $850, $2,400, $3,100, and $4,100 over the next four years, respe

statuscvo [17]

Answer:

It will take 3.13 years to recover the initial investment.

Explanation:

Giving the following information:

A project has an initial cost of $6,900. The cash inflows are $850, $2,400, $3,100, and $4,100 over the next four years.

The payback is the time required to cover for the initial investment.

Year 1= 850 - 6,900= - 6,050

Year 2= 2,400 - 6,050= - 3,650

Year 3= 3,100 - 3,650= - 550

Year 4= 4,100 - 550= 3,550

To be more accurate:

(550/4,100)= 0.13

It will take 3.13 years to recover the initial investment.

6 0

2 years ago