Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 5.68 percent. The firm has a total debt ratio of 58 percent. What is the return on equity? * O 11.57 percent 13.14 percent 028.56 percent 32.14 percent None of the above
Answers
The return on equity (ROE) can be calculated by multiplying the firm's profit margin by its equity multiplier. The formula for ROE is:
ROE = Profit Margin × Equity Multiplier
Given:
Sales of Reliable Cars = $807,200
Total assets of Reliable Cars = $1,105,100
Profit margin = 5.68%
Total debt ratio = 58%
We will calculate the equity multiplier first:
Equity Multiplier = Total Assets / Equity
Total debt ratio can also be written as:
Total Debt Ratio = Total Debt / Total Assets
Equity can be calculated by rearranging the above equation:
Equity = Total Assets - Total Debt
= Total Assets × (1 - Total Debt Ratio)
= $1,105,100 × (1 - 0.58)
= $1,105,100 × 0.42
= $464,322
Now, we can calculate the equity multiplier:
Equity Multiplier = Total Assets / Equity
= $1,105,100 / $464,322
= 2.38
We have profit margin = 5.68%
Hence, the return on equity (ROE) of Reliable Cars is:
ROE = Profit Margin × Equity Multiplier
= 5.68% × 2.38
= 13.54%
Therefore, the return on equity of Reliable Cars is 13.54 percent. Thus, option (b) is correct.
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Related Questions
Why is it important to know the functions of Business?:
Answers
Answer:
it is important to know the function of business because to identify the main functional activities of an organization or any types of work .
Explanation:
mark as a brainlist if it is correct
2. Describe the relationship of profession and education.
Answers
In order to have a profession you need to get an education first. You will learn many things that will help you in your profession, no matter what it is. Even an internship is an education. If you start out working along side someone, that someone is giving you an education in how to do the job you want to do.
If you are planning a profession such as a doctor or lawyer, prepare yourself for a LOT of education. You need at least a basic education in order to prepare you for ANY profession. Add, subtract, multiply, divide, read, write and other things so you won’t get cheated out of pay at the least.
Without an education of some kind, you will not be able to do anything. Even if you are a king or queen that you inherited by birth, you still need to know how to decide things. Everything else can be done for you. But there are very few openings for kings and queens these days.
60 points please help
Review Questions
1. What is logistics?
2. What is hospitality? What is one career in hospitality?
3. What are three locations or sites that people in hospitality or tourism careers work?
4. If you were an innkeeper, what would do for work?
5. What is mobile equipment maintenance?
Critical Thinking Questions
1. Imagine you want to become a chef and restaurant owner. What education and skills would you need?
2. Think about a city bus system. What goes into getting buses where they need to be on time to get people where they need to be?
3. Imagine that you run an amusement park. You have to hire people to work in your park. What skills or characteristics would you look for? Why?
4. Why are transportation jobs important?
5. If you were putting together a bus route in your town, what would you need to think about to make it run well?
Answers
Answer:
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations.
An extremely rainy spring and summer may impact growing crops. This is an example of what type of risk
Answers
Answer:
Environmental risk
Explanation:
In simple words, The environmental risk of farming refers to the affect that various agricultural activities have on the environments in which they operate, as well as how those impacts can be linked to those practices. Agriculture's ecological influence varies greatly depending on the activities used by growers as well as the size at which they operate.
a service provided by -e-government that requires access to the Internet is _____.
A. RFID tags
B. E-tax returns
C. Radio programming
D. CCTV (Closed circuit TV)
Answers
Answer:
B. E-tax returns
Explanation:
E-tax returns is the electronic filing of tax returns via the internet. It entails online submission of pre-approved tax return forms available on the tax authority's website.
In recent years, governments have put measures to facilitate e-returns. It has simplified the process making it popular among taxpayers. Electronic tax filing has have contributed to having a high number of citizens registering as taxpayers.
If the cost of an item of inventory is $56.00 and the current replacement cost is $65.00, what is the amount included in inventory according to the lower of cost or market?
Answers
According to the lower of cost or market rule, the amount included in inventory is the lower of the cost or the market value. In this case, the cost of the item is $56.00, and the replacement cost is $65.00
The lower of cost or market rule states that the amount included in inventory is the lower of the cost or the market value. In this case, the cost of the item is $56.00 and the replacement cost is $65.00. Since the replacement cost of $65.00 is higher than the cost of $56.00, we would use the cost of $56.00 to determine the amount included in inventory.
This means that $56.00 would be the value assigned to the item in the inventory records. The lower of cost or market rule is used to ensure that inventory is reported at the lower of its cost or its current market value, in order to prevent overvaluing inventory and providing a more accurate representation of the company's financial position.
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Which department of a business is responsible for creating budgets and
analyses the inflow and outflow of the company's monetary assets?
Research and Development
O Production
O Accounting and Finance
O Marketing and Sales
Answers
Answer:
Accounting and Finance
Conduct thorough research on the following questions and provide a concise response:
(a) Why is teamwork important in business?
(b) How can employers help facilitate successful teamwork?
Answers
B. People should be rewarded for collaborating and contributing. Let them know how much you appreciate their thoughts and efforts. Employees would be more engaged, inspired, and invested in the organization's success if they are active in every step of decision-making.
Give a numerical example and illustrate the difference between complete crowding out, incomplete crowding out and zero crowding out. Further, determine the effectiveness of fiscal policy in this regard.
Answers
Complete crowding out occurs when government spending increases by a certain amount and is fully offset by a decrease in private investment. For example, if the government increases spending by $100 billion and private investment decreases by $100 billion, this would be complete crowding out.
Incomplete crowding out occurs when government spending increases by a certain amount but private investment decreases by a smaller amount. For example, if the government increases spending by $100 billion and private investment only decreases by $50 billion, this would be incomplete crowding out. Zero crowding out occurs when government spending increases but private investment does not decrease at all. For example, if the government increases spending by $100 billion and private investment remains the same, this would be zero crowding out. Fiscal policy can be effective in reducing crowding out by targeting government spending towards areas that are less likely to displace private investment. Additionally, fiscal policy can be designed to stimulate private investment, such as through tax incentives or infrastructure investments that have spillover effects on private sector productivity. Ultimately, the effectiveness of fiscal policy in reducing crowding out depends on the specific policy measures implemented and the broader economic context in which they are implemented.
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An individual with $100,000 to invest will require these funds in six months for the purchase of a house. In which of the following circumstances did the agent act correctly?A) The agent convinced the client to invest in an IPO on the basis of its high growth prospects.B) The agent convinced the client to invest in a real estate partnership as a hedge against the rise of real estate values until the client purchases the house.C) The agent convinced the client to invest in a Treasury bill on the basis of its safety.D) The agent convinced the client to purchase a $100,000 lump sum annuity on the basis of its security and backing by an insurance company.
Answers
The agent acted correctly in circumstance C). The agent convinced the client to invest in a Treasury bill on the basis of its safety.
Given that the client requires the funds in six months for the purchase of a house, investing in an IPO (circumstance A) or a real estate partnership (circumstance B) would carry higher levels of risk and uncertainty. These investments may not be suitable for short-term financial goals. On the other hand, investing in a Treasury bill (circumstance C) would be a more appropriate choice due to its lower risk profile and short-term nature. Treasury bills are considered relatively safe investments as they are backed by the government.
Purchasing a $100,000 lump sum annuity (circumstance D) may not be the most suitable option either, as annuities are generally designed for long-term retirement planning and may not align with the client's short-term goal of purchasing a house.
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Which of these approaches will NOT accelerate the completion of a project?A. Improve the working method.B. Increase the bureaucratic oversight.C. Improve the productivity of existing project resources.D. Increase the quantity of personnel and equipment.
Answers
Answer:
B. Increase the bureaucratic oversight
Explanation:
In the cash when the project is finished earlier at the time where there is a large number of resources i.e. deployed also at that time the new methods are applied so that the work could be done in fastest way due to which the productivity of the present resources could be rised.
So here according to the given options, the Option B is correct as it does not accelerate the project completion
The same is to be considered
United Supply has a $20 million liability at December 31, 2021, of which $4 million is payable in each of the next five years. United Supply reports the liability in the balance sheet as a:
Answers
a fund of hedge funds: a must invest at least 75% of its assets in hedge funds b must invest at least 90% of its assets in hedge funds c must invest in at least 10 different hedge funds d can invest in any number of hedge funds
Answers
There is no restriction on how the manager distributes invested funds among hedge funds in a "fund of hedge funds."
What are the requirements to invest in a hedge fund?An accredited investor or an institutional investor, such as a pension fund, must be present for an individual to invest in a hedge fund. A net worth of at least $1 million, excluding the value of their primary property, or an annual individual income of over $200,000 qualifies as an accredited investor. Hedge funds are private, actively managed investment funds that make investments in a variety of markets, financial instruments, and investment methods.
In addition to holding equities and fixed income instruments, hedge funds also own a wide range of other asset classes, such as real estate, currencies, and derivatives. Contrary to mutual fund daily redemption requirements, hedge fund investors may be subject to restrictions on share redemptions. A type of investment known as a hedge fund distributes a pool of capital among multiple asset classes.
Therefore the correct answer is option d ) can invest in any number of hedge funds .
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The complete question is -
A fund of hedge funds:
A. must invest at least 75% of its assets in hedge funds
B. must invest at least 90% of its assets in hedge funds
C. must invest in at least 10 different hedge funds
D. can invest in any number
I need help on this
Answers
Answer: fra
Explanation:
If nominal gdp is $1,200 billion and, on average, each dollar is spent five times in the economy over a year, then the quantity of money demanded annually for transactions purposes will be.
Answers
The quantity of money demanded for transactions will be $6,000 if the conditions given above with respect to the nominal GDP are satisfied in an economic situation.
What is the significance of nominal GDP?One way to gauge an economy's health and well-being is to look at its gross domestic product. It is the total worth of all things and services produced over a specific time period less the value of those who worked on those goods and services. Nominal GDP is a measurement of economic output in an economy that takes into account current prices. It does not adjust for inflation or the rate of price increases, which can overstate the growth rate. The prices that were actually paid for all products and services in that year are the values used to calculate nominal GDP.
The quantity of money demanded annually for transactions can be computed using the given nominal GDP's information as under,
Quantity of Money Demanded = Nominal GDP x Dollar Spending
Quantity of Money Demanded = $1200 × 5
Quantity of Money Demanded = $6,000
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Size is limited under a Sole Proprietorship.
True
False
Answers
Answer:
True
Explanation:
because 1 person can't control a huge company or business
If $81,000 is invested in an annuity that earns 5.1%, compounded quarterly, what payments will it provide at the end of each quarter for the next 4 1 2 years
Answers
Answer:
C = $ 5064.61
Explanation:
You are given the present value of an annuity PV = 81 000
5.1 % is .051 in decimal form
quarterly, this is i = .051/4 interest per period (3 months)
4 1/2 years is n = 18 periods
The equation to use is ( you just have to look these up.....there are many different situations)
PV = C * { (1-(1+i)^-n) / i }
Plugging in the above numbers results in:
C = $ 5064.61
A company is trying to figure out what products to offer, when to add new products, and when current products should be discontinued. What tool will assist the company in answering all of those questions
Answers
A product portfolio management tool is used as A company is trying to figure out what products to offer, when to add new products, and when current products should be discontinued.
A product portfolio supervisor (PPM) strategically oversees all of the products in a enterprise's portfolio and guarantees alignment with the organisation's universal method.Product portfolios assist product portfolio managers see if their initiatives align with their organisation's commercial enterprise approach.
This allows them ensure they put money into merchandise that meet their goals and needs. it can be a manual for aligning their upcoming tasks to match the overall intention and preserve them on track. Product portfolio and program control (PPM) is the continuous cultivation of a product set and the set of abilities to prioritize and manage product improvement applications.
A product portfolio refers to the complete list of products provided via a employer. as an instance, if an entity sells laptops and smartphones, the entity's portfolio carries laptops and smartphones. Its factors trade if the entity provides a new product or eliminates a current product inside the presentation.
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What are the 3 disadvantages of trade?
Answers
Tariffs and other restrictions on trade increase the cost of goods and services for American firms and consumers while reducing their supply, which lowers income, employment, and economic production.
What impact does commerce have on the economy?Trade is essential to the prosperity of America because it boosts economic growth, supports domestically produced excellent employment, raises living standards, and enables citizens to sustain their families with reasonably priced goods and services.
good or negative in a trade?The environment can be impacted by trade in both good and bad ways. Economic expansion brought about by increased commerce may have a clear negative effect on the environment by raising pollution levels or deteriorating natural resources.
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If nations specialize according to their
comparative advantage and engage in
international trade with each other, each
nation can
Answers
Nations specialize according to their comparative advantage get benefited outside its PPC.
Specialization based on comparative advantage leads to more effective use of global resources. Both countries will have access to larger quantities of both goods.
Also foreign commerce stimulates the production of various commodities in different nations and leads to specializations.
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Zachary, a college student, watches a financial show on television. The host is a well-known financial advisor. He is talking about borrowing from a 401 (k). This information is _____.
Answers
Answer:
This information will be "Reliable but irrelevant".
Explanation:
The knowledge and details seem to be accurate because he's such a possibly the best-known financial consultant even though it's meaningless because whatever he's concerned about benefits Zach as something of a student of the university. The narrator may be an extremely poorly-known financial planner, but Zachary certainly doesn't have to borrow from some kind of 401(k).identify a true statement about the transactional strategy instruction approach developed by michael pressley and his colleagues.
Answers
The transactional strategy instruction approach, developed by Michael Pressley and his colleagues, is based on the idea that reading comprehension involves a transaction between the reader and the text.
The transactional strategy instruction approach is an instructional approach that focuses on teaching students how to actively engage with a text in order to improve their reading comprehension. This approach is based on the idea that reading comprehension is a transactional process that involves a dialogue between the reader and the text.
TSI combines various comprehension strategies such as summarizing, predicting, clarifying, and questioning to help students better understand the text they are reading.
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Five hair stylists at a salon perform 12 haircuts in two hours. One of the stylists,
Francesca, is leaving the salon after 10 years. Francesca usually performs 2
haircuts per hour. Which of the answer choices is correct?
Answers
The salon's average product of labor will decrease when Francesca leaves the salon in the given circumstances.
How is the average product of labor determined?The average product of labor (APL) gauges the typical output of each employee. The total product is simply divided by the workforce. The total output of labor divided by the quantity of workers employed, or Q/L, yields the average product of labor (APL). A popular metric for assessing labor productivity is the average product of labor.
The form of the AP curve on the left suggests that as more workers are hired, AP initially increases to a maximum before decreasing. The average output (or products) that each input produces is referred to as an "average product", factors of production like labor and land.
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Mr. X and Y are having a discussion. Mr. X felt that business is based on selfish desires to gain higher and higher profits while Mr. Y felt that profit is essential for business. Can you support Mr. Y's case by providing strong points for his favour.
Answers
Answer: Ensure running cost is maintained to sustain business.
Explanation:
Resources to drive the business; probably the capital to start the business ain't much to cover for the production of more products or to cover for other expenses, here there would be a valid point for an increase in finances in some areas which won't be based on greed or selfishness. The running cost of a business matters, so the business doesn't crumble or there isn't enough return on investment.
ow would you feel if your family had “telling of feelings” after dinner every night?
Answers
That evening, after dinner, Jonas's family his father, mother, and sister Lily, seven participated in a custom known as “telling of feelings.” Each participant talks with others about a certain emotion they had throughout the day.
Since then, the term "catharsis" has been used in the mental health community to refer to the process of expressing one's feelings, which is crucial for expressing one's needs, wants, and emotions.
Talking about your emotions confirms that what you're going through is genuine and important to you. You care about something if you are angry about it. You would be discrediting your experience and your ideals if you attempted to disregard that emotion.
Rather than denying your emotions, accept them. Avoid passing judgment on others or yourself.
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An examplepf a cost would be
O profit
revenue
Ofire
O salaries
Answers
which act governors partnership firm??
Answers
Answer:
Partnership firms in India are governed and regulated by the Indian Partnership Act, 1932. Partners are the individuals that join together to form a partnership firm. A contract between the partners establishes the partnership firm.
Explanation:
In
, people invest money in a company in exchange for the company’s
.
Answers
Answer:
In equity crowdfunding, people invest money in a company in exchange for the company’s shares
Explanation:
Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.
Startups and early-stage companies use this method to raise capital.
Allowance for bluffing means that Group of answer choices Salespersons may exaggerate their lowest price. Salespersons may lie about anything. Salespersons may lie about what the product can do. Salespersons may exaggerate the safety of the product.
Answers
Allowance for bluffing means that Salespersons may exaggerate their lowest price.
Allowance for bluffing is a pricing tactic where the seller sets a high price for a product or service with the intention of allowing the salesperson to offer a lower price during negotiations. The salesperson may exaggerate the amount of the discount, sometimes referred to as "bluffing," in order to make the buyer feel they have received a better deal. While this tactic can be effective in certain situations, it can also lead to distrust between the seller and buyer if the bluff is uncovered.
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PLEASE HELP!! NO SPAM!!! I'm literally about to have a mental breakdown because i cant figure these questions out
Answers
Based on the students who passed, the probability that a random student gets an A in Statistics or Psychology or both is 0.226.
The probability that a random student did not get an A in Psychology is 0.84.
What are the probabilities of getting an A in psychology?In order to find out the probability that a person got an A in either Statistics, Psychology, or both, the formula is:
= Probability of A in Psychology + Probability of A in Statistics - ( Probability of A in Psychology and Statistics)
= (80 / 500) + (82 / 500) - ( 49 / 500)
= 0.16 + 0.164 - 0.098
= 0.226
The probability of not getting an A in Psychology is:
= 1 - Probability of A in Psychology
= 1 - (80 / 500)
= 0.84
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