1.
Introduction: The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE). A corporation is better at turning its equity financing into profits the higher the ROE.
To calculate: The return on equity.
2.
Introduction: The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE). A corporation is better at turning its equity financing into profits the higher the ROE.
The general rule given by part 1.

Want to see the full answer?
Check out a sample textbook solution
Chapter 10 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING
- 5 PTSarrow_forwardWhat is the labor rate variance for the month on these general accounting question?arrow_forwardJonathan Smith's weekly gross earnings for the week ending March 10 were $3,200, and his federal income tax withholding was $620. Prior to this week, Smith had earned $110,000 for the year. Assuming the Social Security rate is 6% and Medicare is 1.5%, what is Smith's net pay?arrow_forward
- financial accountingarrow_forwardGalaxy Pens Ltd. produces pens at a factory designed to produce 15 million pens per year. In 2023, the fixed production overhead related to the factory was $1.8 million, and the factory produced 13 million pens. The inventory cost for each pen related to the fixed production overhead is closest to? a. $0.12 b. $0.14 c. $0.13arrow_forwardWhat was the percentage change in inventory of this financial accounting question?arrow_forward
- Given the solution and accounting questionarrow_forwardLast year, BrightTech Inc. reported earnings per share (EPS) of $5.50, and its stock price was $110.00. This year, its earnings increased by 15%. If the P/E ratio remains constant, what is likely to be the price of the stock? a) $120.75 b) $126.50 c) $115.00 d) $132.00arrow_forwardGive me solution this questionarrow_forward
- Rolex Industries uses a predetermined overhead rate based on direct labor hours. The company applies overhead at a rate of $9 per direct labor hour, which consists of a variable overhead rate of $5 per direct labor hour and a fixed overhead rate of $4 per direct labor hour. The budgeted fixed overhead costs for the period total $60,000. Using the budgeted direct labor hours, calculate the total budgeted overhead for the period.arrow_forwardYardley Electronics purchased 3,500 tablets and has 600 tablets in its ending inventory at a cost of $120 each and a current replacement cost of $110 each. The net realizable value (NRV) of each tablet in the ending inventory is $95. The ending inventory under the lower-of-cost-or-net realizable value (LCNRV) is?arrow_forwardWhat is the direct materials price variance of this accounting question?arrow_forward
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT


