kaylarenee05080
15.07.2020 •
Business
The DuPont equation provides information about how operations affect the ROE, but the equation does not include the effects of debt on the ROE. b. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Under these conditions, the ROE will increase. c. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Without additional information, we cannot tell what will happen to the ROE. d. Other things held constant, an increase in the total debt to total capital ratio will result in an increase in the profit margin. e. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Under these conditions, the ROE will decrease.
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Ответ:
Jose should tell George about the comparison sites the way it helps to compare the price of different products in different outlets s well cross different brands, however, the results are not always perfect and accurate.
Explanation
The Business Model of Price Comparison Sites is immensely useful and makes a clear cut comparison of different products concerning their brands and various market outlets. These comparison sites help create a better rapport with customers as also it helps create value for the products, however, at the same time Price Comparison sites are not considered to be the best and perfect way of determining prices.Price Comparison sites are laden with lots of imperfections that makes it a little inaccurate and undesirable. The first flow of Business model price comparison sites is that they don't consider the competitor's price which leads to overpricing of one's product. As a result of this overpricing, customer demand for such products goes down and eventually loss for the company. The other imperfection which is there in business model price comparison is that companies while pricing product takes into consideration several criteria and determinants which are not considered by business models. Therefore, this often leads to overpricing and under-pricing. Furthermore, differences in the price of the product on the website and the one determined by the price comparison model also points to imperfection.