a) PKR 3,200 b) PKR 18,000 c) PKR 30,000 d) PKR 33,200 15. Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. Both firms have a total debt ratio (D/V) equal to 0.8. Firm A has an asset turnover ratio of 0.9, while firm B has an asset turnover ratio equal to 0.4. From this we know that a) Firm A has a higher profit margin than firm B b) Firm B has a higher profit margin than firm A c) Firm A and B have the same profit margin d) Firm A has a higher equity multiplier than firm B 16.
Week 2 Cases C4-4 and C5-1 Carlos Carmona January 22, 2012 Benedictine University C4-4 Please See Attached Excel Document C5-1 1. Which company was the more profitable in 2006? (Hint: Compare ROE and ROA performance for the two grocery retailers.) Concentrating first thing on a comparing ROE, the Kroger Company performed better than Safeway in 2006. This is because Kroger’s ROE was 23.9% in comparison to 16.4% for Safeway.
ACCOUNTING CASES, RESEARCH, AND ANALYSIS GROUP ASSIGNEMNT #1 MEMORANDUM TO: Professor Siyi Li FROM: Group 5 DATE: October 3, 2013 SUBJECT: Performance Based Stock Compensation This memo is an analysis of the case in which the Company Sooner or Later Inc granted “at the money” performance based stock options and the fair value is not easily determinable. The grant-date fair value of each award is $9. With the revenue target factored into the fair value assessment the grant-date fair value is $6. Management believes it is probable the company will achieve cumulative revenue in excess of $10 million. General Priciple – Performance are only recorded when the target is proable to be acheived Sooner and Later Inc On January 1, 2006, Sooner or Later Inc. granted 1,000 “at-the-money” employee stock options (i.e., the exercise price was equal to the stock price on the grant date).
After adding $15,300 to the $15,000 in savings, the cash flow for year 2 would equal $30,300. For year 3, the depreciation expense would equal $85,000 * .15, or $12,750. The tax on the year 3 deprecation would then be $12,750 * .40, which equals $5,100. After adding $5,100 to the $15,000 in savings, the cash flow for year 3 would equal
Running head: SWOT SWOT Daniel Goodman Cardinal Stritch University Instructor: Walter Wochos MGT 426: Marketing March, 14 2012 One of the components of strategic marketing planning requires the creation of a series of strategic alternatives, or choices of future strategies to pursue, given the company's internal strengths and weaknesses and its external opportunities and threats. The comparison of strengths, weaknesses, opportunities, and threats is normally referred to as a SWOT analysis. Strength: Strength is an inherent capability of the organization which it can use to gain strategic advantage over its competitors. Weakness: A weakness is an inherent limitation or constraint of the organization which creates strategic disadvantage to it. Opportunity: An opportunity is a favorable condition in the organizations environment which enables it to strengthen its position.
The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14. The interest income has decreased which may concern a banker looking to approve a loan. It would be good to invest the money in a more secure or profitable investments. Utilities and services have also increased from $238,000 to $260,000 in year 14. Contracts with utility companies can be re-negotiated.
When a resignation is received, HR should take reasonable steps to do an outtake interview with the employee to find out why they are leaving and whether the company can take steps to improve the work environment. These outtake interviews should be kept in company records should a complaint arise, so that it can be demonstrated that the company did not have the requisite intent to constructive discharge employees. Finally, the company should make it a policy to address all employee complaints. This will not only foster better communication with employees, but allow the company to demonstrate that it has not constructive discharged an
Armstrong’s failures to meet their obligation gives GCI three options: they may reject the entire shipment of goods, accept the shipment of goods as is, or accept any number of commercial units and reject the rest of the goods, (Melvin 2011, pg. 192). One right that is available to Armstrong is referred to as the cure. The cure is the UCC’s way of promoting the completion of an original contract. It would allow Armstrong (the seller) the right or opportunity to repair or replace any goods that the buyer (GCI) has rejected as long as the time period for performance has not
Q: Retail industry 26. What does the evidence in Panel A of Table 2 suggest about revenues, earnings and abnormal stock returns in 14-week quarters compared to 13-week quarters? Q: In Panel A of Table 2, the researchers contrast mean and median values of revenues, revenue forecast errors, earnings, earnings forecast errors and abnormal stock returns in 14-week quarters relative to all 13-week quarters. By comparison, all revenue metrics in 14-week quarters are higher, on average, than corresponding metrics in 13-week
BCOM/230 Abstract This exercise explains what we would write differently to our top administrators. It also indicates the way the memo should change based on its audiences. What types of information should be included in this memo what types of information should be omitted. This exercise will point out the potential repercussions of failing to know the audiences. Review Memo to the Executive Vice-President This message should be short but complete coverage of the subject matter.