Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $550,000, and its net income was $25,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant? Do not round your intermediate calculations.
Answers
Answer:
10.22%
Explanation:
Data provided in the question:
Assets of Chang corp. = $375,000
Sales = $550,000
Net income = $25,000
Net Income required at 15% ROE = 15% × $375,000
= $56,250
Therefore,
The profit margin =
or
The profit margin =
or
The profit margin = 10.22%
Answer:
Profit Margin = 10.227%
Explanation:
Given:
Total Assets = $375,000(Common equity)
Sales = $550,000
Net Income = $25,000
Return on equity = 15% = 15/100 = 0.15
Profit margin = ?
Computation of profit margin:
Profit margin = (Common Equity × Return on equity) / Sales
Profit Margin = ($375,000 x 0.15) / $550,000
Profit Margin = ($56,250) / $550,000
= 0.102272
Profit Margin = 10.227% (approx)
Related Questions
A produce distributor uses 773 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an annual carrying cost of 33 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ?
Ayayai Corp. lends Martinez industries $48000 on August 1, 2022, accepting a 9-month, 6% interest note. If Ayayai Corp. accrued interest at its December 31, 2022 year-end, what entry must it make to record the collection of the note and interest at its maturity date
Ivanhoe Electronics reported the following information at its annual meetings: The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,145,200, accounts receivables of $3,489,700, short-term notes payable worth $1,138,700, and other current assets of $121,455. What is the company's net working capital
Can someone please help me? I’ll give you brainliest points
b.A better divisional performance measure would be the rate of return on investment
c.A better divisional performance measure would be the residual income.
d.None of these choices would be included.
e.All of these choices (a, b & c) would be included.
Answers
Answer:
Option D
Explanation:
In simple words, method of performance division is considered to be effective when it depicts a true picture, not because it gives a sound position of the organisation as waned by the managers.
Thus, reticulation should not be done. Also, Divisional performance should be judged by some other aspects like time taken to perform the job or wastage done by them etc.
yes or no?
Answers
Answer:
The Answer is gonna be Yes
B. caretaker rep
C. order getter
D. order taker
E. sale support personnel
Answers
Answer:
(D) order taker.
Explanation:
An order taker is a salesperson who collects orders checks inventories, processes straight rebuys, sets up displays but does not make any effort to invite new customers or persuade the existing ones to increase their quantities of purchase.
Answers
Answer:
The balance of Common Stock for Grayson Company is $8,300
Explanation:
For computing the common stock value, first we have to compute the ending retained earning balance which is shown below
= Beginning retained earning balance + revenues - expenses
= $3,300 + $10,100 - $7,550
= $5,850
Thus, the ending balance is $5,850
Now by applying the accounting equation we can compute the common stock value
Accounting equation is equals to
Assets = Liabilities + Equity
where,
Assets = Cash + Accounts receivable + Land
= $5,000 + $2,100 + $8,600
= $15,700
Liabilities = Accounts payable = $1,550
And, Equity = Ending Retained earnings balance + common stock
= $5,850 + common stock
Now, apply the above accounting equation which is shown below:
$15,700 = $1,550 + $5,850 + common stock
$15,700 = $7,400 + common stock
So, common stock = $8,300
Hence, the balance of Common Stock for Grayson Company is $8,300
Answers
Matt and Claire go into an interview for the same position.This type of interview is called Unstructured interview.
What is the term Unstructured Interview about?
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
Learn more about Unstructured Interview, refer to the link:
Answer:
Unstructured interview
Explanation:
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
So when Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going, they are answering unstructured interview questions.
Answers
Answer:
Medicaid can provide cost-sharing assistance. Depending on your income, you may qualify for the Qualified Medicare Beneficiary (QMB). If you are enrolled in QMB, you do not pay Medicare cost-sharing, which includes deductibles, coinsurances, and copays.
Explanation:
The Centers for Medicare & Medicaid Services (CMS) are responsible for implementing laws and various forms of guidance, sub-regulatory guidance operational updates and technical clarifications passed by Congress related to Medicaid and the Basic Health Program to explain what states and others need to do to comply.
There are 4 “metal” categories of health insurance plans: Bronze, Silver, Gold, and Platinum. These categories show how you and your plan share costs. Plan categories are independent from quality of care. The total costs for health care include a monthly premium bill to the insurance company and out-of-pocket costs, which have a big impact on your total spending on health care and sometimes more than the premium itself as the out-of-pocket maximum is the amount you have to spend for covered services in a year, and only after you reach this amount, the insurance company pays 100% for covered services; and the deductible, which is the amount you have to spend for covered health services before your insurance company pays anything (except free preventive services). The Plan and network types allow you to use or not doctors or health care facilities. Plans & prices are issued according to the income and household information and they determine the copayments and coinsurance, which are payments you make each time you get a medical service after reaching your deductible
There are plans that have very low monthly premiums, but have high deductibles and pay less of your costs when you need care.
If you qualify for "cost-sharing reductions" (CSRs), Silver plans may offer good value because of a lower deductible. The income determines where your estimate falls in the range for cost-sharing reductions.
A Gold plan or Platinum plan generally have higher monthly premiums but pay more of your costs when you need many doctor visits or regular prescribed medication.
Answer:
^^^^
Explanation: