The table that follows summarises the financial performances of four companies inthe year 2020. The information in this table suggests that [ Select ] generated thehighest return-on-equity.ProfitAssetTotalTotalMargin Turnover(%)Equity(times) ($million) ($million)CompanyAssetsA12.00.512,5104,500В5.61.66,8903,250C7.01.37,7914,900D10.00.810,3687,200

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by…

The table that follows summarises the financial performances of fo the year 2020. The information in this table suggests that [ Select highest return-on-equity. Profit Asset Total Total Margin Turnover (%) Company Equity (times) ($million) ($million) Assets A 12.0 0.5 12,510 4,500 В 5.6 1.6 6,890 3,250 C 7.0 1.3 7,791 4,900 D 10.0 10.368 7.200

The table that follows summarises the financial performances of fo the year 2020. The information in this table suggests that [ Select highest return-on-equity. Profit Asset Total Total Margin Turnover (%) Company Equity (times) ($million) ($million) Assets A 12.0 0.5 12,510 4,500 В 5.6 1.6 6,890 3,250 C 7.0 1.3 7,791 4,900 D 10.0 10.368 7.200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

2- A rough rule of thumb for the chemical industry is that OMR 1 of annual sales required OMR 2 of fixed capital investment. In a chemical processing plant where this rule applies, the total capital investment is OMR 3200000 and the working capital is 18% of the total capital investment. The annual net total product cost amounts to 1500000 OMR. If the income tax rates on gross earnings total 21%, determine the following: (a) Percent of total capital investment returned annually as gross earning. (b) Percent of total capital investment returned annually as net profit.
What process does the net present value method use to help management determine whether a project is acceptable to a company? Options : A. It discounts net cash flows to their present value and then compares that value to the capital outlay required by the project.B. It determines the interest rate that will cause the present value of the capital expenditure to equal the present value of the expected net cash flows.C. It divides the present value of net cash flows by the initial investment to determine the profitability index of the project.D. It identifies the time period required to recover the cost of the capital investment from the net annual cash flow produced by the project.
5. Rearden Metals is considering opening a strip mining operation to provide some of the raw materials needed in producing Rearden metal. The initial purchase of the land and the as- sociated costs of opening up mining operations will cost $100 million today. The mine is expected to generate $30 million worth of ore per year for the next 10 years. In 11 years, when the project is over, Rearden will need to spend $200 million to restore the land to its original pristine natural appearance. Which of the following is FALSE? A) Rearden should only use the NPV rule in this case to determine whether to make this investment. B) Rearden could use either the NPV rule or the IRR rule in this case, and will get the same answer regardless of the cost of capital. C) In this case, the NPV will not necessarily be decreasing in the cost of capital or discount rate used. D) Rearden should not use the payback rule in this example because it is likely to be mis- leading. E) Rearden could make a mistake…
1. Individual Problems 1-11 The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. For the first $150,000 of profit, the vice president's compensation is a flat annual salary of $50,000 plus 50% of company profits. Beyond the first $150,000 in profits, the vice president's compensation is the salary he receives at $150,000 profit plus 20% of company profits in excess of $150,000. On the following graph, use the purple points (diamond symbols) to plot the vice president's salary as a function of annual profit, for the profits levels of $0, $50,000, $100,000, $150,000, $200,000, $250,000, and $300,000. MANAGER SALARY (Thousands of dollars) 250 725 200 175 110 125 100 Total VP Salary
а. Describe the various types of audits, both internal and external, that are applicable to healthcare organizations. In describing these elements, consider following: How are internal and external audits of healthcare organizations different? What are some of the common internal and external audits that you will encounter while working in healthcare organizations?
4. Last year Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 63% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets? Please TYPE
1. The simplest type of business organization, wherein the business is owned entirely by one person. Allprofits obtained from the business are his alone, but he must also bear all losses should they beincurred. Ans.;2. A business type composed of an association of two or more persons for the purpose of engaging in abusiness for profit. Ans.;3. A business type of distinct legal entity, separate from the individuals who owned it, and which canengage in practically any business transaction which a real person could do, considered the mostimportant type of business. Ans.;4. A certificate of indebtedness of a corporation usually for a period not less than 10 years, andguaranteed by a mortgage on certain s of the association. Ans.;5. A bond whose owner’s name is recorded in the books of the corporation. Ans.;6. These are bonds whose security is a mortgage on certain specified assets of the corporation. If thecorporation fails to pay the bond value at the date of maturity, title to the…
3514e77ebfcb001ff309cb?start=true Chapter 7 - Production, Cost and Industry Structure OPEN Practice similar What is the Smith Co's Total Revenue? $ Submit answer Suppose that the firm Smith Co sells 10 gowns for $115.00 per gown. Each gown costs $74.00 to produce, and Smith Co could rent out their factory space for $330.00 per month. Answers (in progress) O E Answer hp I # $ 9 4 Score -/1 2 ☆ 68°F 6 I am finished 11:12 PM 9/28/2022 LINE 4461
1. ABC Co. has a preferred stock with an annual dividend of $8.5 per share. If the required return on this preferred stock is 17.5%, at what price should the stock sell? * a) $106 b) $105 c) $103 O d) $113.33 O e) None of the above
Panel C Panel D 101.00 0.04 101.00 0.04 100.00 100.50 0.03 0.03 99.00 98.00 97.00 96.00 100.00 0.02 0.02 99.50 0.01 0.01 95.00 99.00 94.00 93.00 92.00 98.50 -0.01 -0.01 actual output (left axis) actual output (left axis) full-employment output (left axis) - full-employment output (left axis) -interest rate (right axis) interest rate (right axis) Assume that inflation is 1% throughout the entire year and the inflation target is 2%. In which of the four panels the interest rate set by the central bank is inconsistent with the Taylor rule? O A. panel A O B. panel B O C. panel C O D. panel D Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
3. Which of the following must be included in an organization’s statement of accounting profits for the statement to be of use?a. the estimated amount the organization could have earned pursuing other optionsb. the extent to which technological improvements increased productivityc. the percentages planned for reinvestment or distribution to investorsd. the period in which the profit was earned, such as a year or a quarter
Which of the following statements is true about current and capital and financial acocunts? O A. Their sum equals zero B. Their sum is always negative C. Their sum is always positive D. They are unrelated