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bulgar [2K]
2 years ago
10

Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M sha

reholder).
($millions) 2015 2014
Sales $31,718
Net income consolidated 5,787
Net income attributable to
3M shareholders 5,779
Assets 33,395 $31,886
Total equity 11,747 13,142
Equity attributable to 3M
shareholders 11,708 13,109
A. Compute return on equity (ROE).
B. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage.
C. Compute ROA.
Business
1 answer:
amid [387]2 years ago
7 0
Mate what is this. Ok
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A review of the accounting records of Baird Manufacturing indicated that the company incurred the following payroll costs during
ankoles [38]

Answer:

a. $363,000

b. $827,200

Explanation:

The computations are shown below:

a. Payroll cost would be

=  Salary of the company president + Salary of the chief financial officer + Salary of the vice president of marketing +  Salaries of administrative secretaries + Commissions paid to sales staff

= $75,000 + $42,000 + $40,000 + $60,000 + $146,000

= $363,000

And, for computing payroll cost first we have to determine the total cost which is shown below:

= Salary of the vice president of manufacturing + Salaries of middle managers (department heads, production supervisors) in manufacturing plant + Wages of production workers + Salaries of engineers and other personnel responsible for maintaining production equipment

= $50,000 + $147,000 + $703,500 + $133,500

= $1,034,000

Now the cost of goods sold would be

= Total cost × sales units ÷ number of units produced

= $1,034,000 × 4,000 units ÷ 5,000

units

= $827,200

3 0
2 years ago
Which of the following illustrates a tradeoff​? A. Randy enjoys ski vacations. B. I will study for my exam instead of going to t
aliya0001 [1]

A tradeoff is a balance achieved between two desirable but incompatible feature. So the reasonable answer would be B

8 0
2 years ago
Consider two perfectly negatively correlated risky securities, K and L. K has an expected rate of return of 13% and a standard d
mihalych1998 [28]

Answer:

risk free rate of return is  = 11.37 %

Explanation:

given data

K expected rate of return = 13%

K standard deviation = 19%  = 0.19

L expected rate of return = 10%

L standard deviation = 16% = 0.16

to find out

risk-free portfolio rate of return

solution

first we find here weight of each portfolio

weight of K = \frac{L standard deviation}{K standard deviation+ L standard deviation}      ..................1

weight of K = \frac{0.16}{0.19+0.16}

weight of K = 0.4571 = 45.71%

and

weight of L = 1 - 0.4571

weight of L = 0.5428 = 54.28 %

so that

risk free rate will be here

risk free rate = ( weight of K × K expected rate of return  ) + ( weight of L + L expected rate of return  )    ..........................2

risk free rate = ( 45.71 % × 13 % ) + ( 54.28 % + 10% )

risk free rate = 11.37 %

4 0
2 years ago
Fid the higest common factor of <br>21a²b and 49ab² ​
spayn [35]

Answer:

7ab

Explanation:

21a²b = 7ab * 3b

49ab² = 7ab * 7b

6 0
2 years ago
Cold Boxes Ltd. has 100 bonds outstanding (maturity value = $1,000). The nominal required rate of return on these bonds is curre
pentagon [3]

Answer:

correct option is c.4%

Explanation:

given data

maturity value = $1,000

nominal rate of return r = 10 percent  = 5 % semi annually = 0.05

mature time t = 5 years  = 10  semi annually

current market value = $768

solution

we apply here present value formula that is

present value = coupon rate × maturity value × \frac{1-(1+r)^{-t}}{r} + \frac{mature\ value}{(1+r)^{-n}}   ..............1

put here value and we get

$768 =  coupon rate × $1000 ×  \frac{1-(1+0.05)^{-10}}{0.05} ×  \frac{1000}{(1+0.05)^{-10}}

solve it we get

coupon rate  = 1.99549 %  Semi-annual

so here annual coupon interest rate is = 2 × 1.99549 %

annual coupon interest rate is 3.99 = 4%

so correct option is c.4%

8 0
2 years ago
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