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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.

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Calculating the Effect of Inflation.Bill and Sally Kaplan have an annual spending plan that amounts to $39,500. If inflation is
Mkey [24]

Answer:

$39,348

Explanation:

The amount that Bill and Sally Kaplan need represents the future value of $36,000

The inflation rate of 3 % if the interest rate

$36,000 will be the present value  PV

The period is three years

The Future Value: FV = PV x(1+r)n

=FV = $36,000 x (1+3/100)3

=$36,000 x (1+0.03)3

=$36,000 x 1.093

=$39,348

8 0
2 years ago
To what extent do cost recovery deductions based on the capitalized cost of a tangible asset reflect a decline in the economic v
sladkih [1.3K]

Answer:

Cost recovery deductions do not have relationship to any decline in value of the property to which the deduction relates.

Explanation:

Capitalised costs are the cost that is incurred when building and financing a fixed asset. For example labour cost in building and financing an asset.

These expenses are added to the cost of the asset (capitalised) and taken gradually over time through depreciation, depletion, and amortization. They are not taken out of revenue in the period when they were incurred.

So cost deductions through capitalised cost is not related to the value of the asset but is an expense that is incurred in relation to the asset, and it's payment is spread out over time.

For example if $1,200 is incurred on construction of an asset worth $500,000. If $1,200 is capitalised over 12 months $100 will be deducted each month from expense. This does not affect the value of the asset ($500,000).

7 0
2 years ago
Darius is considering buying new bedroom furniture. Naturally, he compares several types of beds, dressers, and bedside tables,
miss Akunina [59]

Answer: (B) The total product offering

Explanation:

 According to the question, Darius is evaluating the total offering of the products by comparing each products such as bedside table, beds and the dresses with the other brands.

By comparing one brand with the other brands, he evaluating the products price, warranty and the reputation.  

The total product offering is basically defined as the amount of the total products offered as the final output. The consumers are evaluating each product before busying the product.

Therefore, Option (B) is correct.

3 0
2 years ago
CamScan is a manufacturer of printers, scanners, and other office equipment. It announces a cash refund for corporate purchases
Naddik [55]

Answer:

rebate

Explanation:

Rebates are used in marketing as discounts for qualifying customers. Instead of offering a general broad discount to every customer, when companies use rebates they can decide what type of customers will receive them. Even some customers that could qualify for the rebate wouldn't get it, since they need to send a form provided by the company and not everyone will be willing to do it.

5 0
2 years ago
A cost, which does not involve cash outlay, is called:
Deffense [45]
The answer would be  : B. Imputed Cost

Imputed cost are the cost that could not be identified directly. example of imputed cost is an opportunity cost that may arise if you choose an investment

Meanwhile , outlay costs are the one that can be identified in the past , present, or future, which mean imputed cost does not included in the outlay cost
8 0
2 years ago
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