Explain why the firm roe changed between year

Assignment Help Financial Accounting
Reference no: EM132497068

Question 1: Star Inc. has year 1 revenues of $80 million, net income of $9 million, assets of $65 million, and equity of $40 million, as well as year 2 revenues of $87 million, net income of $22 million, assets of $70 million, and equity of $50 million. Calculate Star's return on equity (ROE) for each year based on te DuPont method and compare it with a direct ROE measure. Next, explain why the firm's ROE changed between year 1 and year 2.

Reference no: EM132497068

Questions Cloud

How much of a percentage premium over the market price : Assuming the stock market is efficient, why would one company be prepared to pay a premium over current market value to acquire another
What is a gene pool : What is a gene pool? Imagine much of a species' habitat was destroyed or fragmented due to human development
How an organisation can improve its innovation potential : How an organisation can improve its innovation potential. You are required to conduct research into a named organisation which should include a completed audit
Regions of the canadian boreal forest : You are investigating disturbance regimes in two regions of the Canadian boreal forest. Region A experiences intense forest fires that will last for weeks
Explain why the firm roe changed between year : Explain why the firm's ROE changed between year 1 and year 2. Star Inc. has year 1 revenues of $80 million, net income of $9 million, assets of $65 million
What can perfectly competitive firms expect in the long run : Compare ?the short run and long run for perfectly competitive firms. How do perfectly competitive firms adapt to market changes in the short run?
Features of oxycodone : What would be the features of oxycodone for it to be a teratogen? What factors might affect its potency? How could it be tested?
Evaluate the overall marketing mix strategy : Choose one of these retail chains to evaluate their overall marketing mix strategy. Think about your experience when you shop there and evaluate the following.
What action should take to demonstrate : Personnel have been escalating. What action should you take to demonstrate your commitment to getting the business relationship back on track?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find how much is the depreciation expense

Find how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount?

  Formula flexible budget

The controller for Rainbow Children’s Hospital, located in Munich, Germany, estimates that the hospital uses 31 kilowatt-hours of electricity per patient-day, and that the electric rate will be €.19 per kilowatt-hour. The European monetary unit €, th..

  What is the expected capital gains yield

(a) What is the dividend yield for each of these four shares? (b) What is the expected capital gains yield? (c) Discuss the relationship among the various returns that you find for each of these shares?

  Different depreciation methods-annual depreciation expense

Boscan Corporation purchased machinery on January 1, 2014, at a cost of $270,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $26,000. The company is considering different deprec..

  Based on budgeted direct labor-hours

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,600 direct labor-hours will be required in August. The variable overhead rate is $7.80 per direct labor-hour...

  Interest and principal were paid in cash

Classic Corporation borrowed $108,000 from the bank on November 1, 2012. The note had an 4 percent annual rate of interest and matured on April 30, 2013. Interest and principal were paid in cash on the maturity date

  Fill in the missing line item labels and dollar amounts in

fill in the missing line item labels and dollar amounts in accounts.triton corporation is trying to better manage its

  Determine the net cash provided by operating activities

Determine the net cash provided (used) by operating activities

  Prepare the journal entry to record the impairment of asset

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2013, assuming Pulido will continue to use the asset in the future.

  What is the amount of the cash flow to creditors

The beginning and ending total debt balances were $84,652 and $78,613, respectively. The interest paid was $4,767. What is the amount of the cash flow to credit

  Uses job order costing system to account for projects

Crenshaw uses a job order costing system to account for projects. It applies manufacturing overhead to jobs on the basis of direct labor hours and pays its direct labor workers $25 per hour. Prepare the journal entry to record: The purchase of direct..

  Find the variable and fixed manufacturing cost

Supplementary financial statement that supports the cost of goods sold figure on the income statement by summarizing raw materials, direct labor, and manufacturing overhead costs incurred during the period.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd