Business, 03.01.2020 02:31 laahmiisy

Firm a and firm b have debt-total asset ratios of 65 percent and 45 percent, respectively, and returns on total assets of 5 percent and 9 percent, respectively. what is the return on equity for firm a and firm b?

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Answer from: brandonshaw16

Firm A = 14.29%

Firm B = 16.36%

Explanation:

Firm A:

Debt-total asset ratio = 65 percent

= 0.65

Therefore,

Equity-total asset ratio = 1 - 0.65

= 0.35

Returns on total assets = (Net Income ÷ Total assets) × 100

= 5 percent

= 0.05

Return on Equity:

= (Net Income ÷ Equity) × 100

= (0.05 ÷ 0.35) × 100

= 0.1429 × 100

= 14.29%

Firm B:

Debt-total asset ratio = 45 percent

= 0.45

Therefore,

Equity-total asset ratio = 1 - 0.45

= 0.55

Returns on total assets = (Net Income ÷ Total assets) × 100

= 9 percent

= 0.09

Return on Equity:

= (Net Income ÷ Equity) × 100

= (0.09 ÷ 0.55) × 100

= 0.1636 × 100

= 16.36%

Answer from: Quest

answer: nobody

explanation:

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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