If a firm has an ROA of 10% and an ROE of 10%, then the
A) operating results of the firm are improving.
B) firm has no financial leverage.
C) firm must have enough cash on hand to pay some extra dividends.
D) firm is losing money.
Answer: B
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Sparks Stationery Company is a price-taker and uses target pricing
The company has just done an analysis of its revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following information: Target full product cost $520,000 per year Actual fixed cost $280,000 per year Actual variable cost $2 per unit Production volume 152,000 units per year Actual costs are currently higher than target full product cost. Assuming that fixed costs cannot be reduced, what is the target variable cost per unit? (Round your answer to the nearest cent.) A) $3.42 B) $1.58 C) $1.84 D) $2.00
The money market is a market ________
A) that enables suppliers and demanders of long-term funds to make transactions B) which brings together suppliers and demanders of short-term funds C) where smaller, unlisted securities are traded D) where all derivatives are traded