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
Rzqust [24]
2 years ago
12

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

Business
1 answer:
ipn [44]2 years ago
5 0

Answer: c. Total Assets/ Equity

Explanation:

To measure the Return on Equity with 3 ratios, the <em>DuPont Analysis</em> 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.

You might be interested in
Troy filed a good faith complaint of discriminatory harassment against his supervisor, Cynthia. One day after receiving notice o
Paraphin [41]

Answer:

Of course this is a retaliatory action. Troy filed a complaint for discriminatory harassment against Cinthia and she answers back by discriminating against Troy even more. All she needed to do was stop discriminating against Troy, she wasn't supposed to increase discrimination against him. This is an example of what shouldn't happen.

Explanation:

5 0
2 years ago
Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this inv
Alenkinab [10]

Answer: Interest revenue for $2400

Explanation:

From the question, we are informed that Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this investment includes a debit for Interest revenue for $2400.

This was calculated in the following way:

= $60,000 × 8% × 1/2

= $60,000 × 0.08 × 0.5

= $2400 interest revenue

8 0
2 years ago
Read 2 more answers
"the public safety office at millennium college maintains a list of parking tickets issued to vehicles parked illegally on the c
aalyn [17]

Parking illegally on college grounds is an offense so there fore parking tickets should be maintained

5 0
2 years ago
A jewelry store has a discount for customers who purchase multiple pairs of earrings: after paying full price for one pair of ea
scZoUnD [109]

Answer:

Correct Statement is D

Explanation:

Provided information,

The Jewelry Store sells pair of earrings, where the discount is of 15% on the price of second pair.

This states that the consumer will always be willing to pay the cost of first pair in full, whenever the customer buys such pair, whether alone or with some additional pair.

Thus the willingness to pay for any pair after purchase of first pair of earrings will always be less than the cost of first pair, as the amount paid for first pair is $40 and that for second pair costing $40 but purchased for $34 as because there was discount on second pair.

In the given case John purchased the second pair because there was discount, else John has bought the same pair for $40.

Thus his willingness for second pair is always lower than the price of first pair.

Correct Statement is D

3 0
2 years ago
Hardwoods, a timber supplying company, contracted with a furniture manufacturer, taylor furniture. hardwoods owned a large plot
charle [14.2K]
A. Instead of a tornado’s striking Hardwoods’ land, the state in which Hardwoods operates passes a law making it illegal for any lumber
<span>companies to cut down trees for the purposes of selling their wood. This environmental measure causes Hardwoods to go out of business.</span>
6 0
2 years ago
Other questions:
  • Reducing interest rates encourages consumers to _____.
    11·2 answers
  • On December 31, 2017, Dow Steel Corporation had 770,000 shares of common stock and 47,000 shares of 9%, noncumulative, nonconver
    5·1 answer
  • Three years ago, Vincent Chow completed his degree in accounting. The economy was in a depressed state at the time, and Vincent
    10·1 answer
  • If Negan Corp. common stock is valued at $40 per share, dividends are paid quarterly and expected to grow quarterly by 1.2% fore
    15·1 answer
  • Ehrling, Inc., manufactures metal racks for hanging clothing in retail stores. Ehrling was approached by the CEO of Carly’s Corn
    14·1 answer
  • Franklin Corporation issues $88,000, 10%, five-year bonds on January 1 for $92,000. Interest is paid semiannually on January 1 a
    8·1 answer
  • Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.Required:a. The
    9·1 answer
  • Which of these means of assessing candidates generally has the lowest correlation with subsequent performance?
    12·1 answer
  • The internal rate of return is unreliable as an indicator of whether or not an investment should be accepted given which one of
    8·1 answer
  • Brad will graduate next year. When he begins working, he plans to deposit $6000 at the end of each year into a retirement accoun
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!