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Required: Question 5: (25 marks) (a) Decompose the change in ROCE into components due to financing activities and operating activities. (4 marks) The CEO of Everest Ltd. stated the following in the company's 2021 annual report: "Everest continues to make good use of shareholders' funds through new investments. Shareholders' faith in the company was rewarded by improved performance as indicated by an increase in return on common equity". In response to the managing director's comments, you set about analysing the growth of the company and produce the following table: (b) Decompose the change in RNOA into components due to profit margin and asset turnover. (6 marks) (c) Decompose the change in common shareholders' equity into components due to sales growth, the change in net assets required to support sales, and changes in borrowing. Return on common equity (ROCE) Return on net operating assets (RNOA) Net borrowing cost (NBC) Sales ($ millions) Operating income after tax ($ millions) Average net operating assets ($ millions) Average net financial obligations ($ millions) Average common shareholders' equity ($ millions) 2021 15.47% 12.86% 3.50% 530 153 1,190 260 930 2020 14.89% 13.87% 3.00% 430 129 930 80 850 (6 marks)

Answers

Answer 1

The financial data is being transcribed. Everest Ltd. has seen an increase in the return on common equity (ROCE) from 14.89% in 2020 to 15.47% in 2021, according to a report. In response to the managing director's comments, an analysis of the growth of the company was carried out.

ROCE has been broken down into components attributable to financing activities and operating activities. Return on net operating assets (RNOA), net borrowing cost (NBC), sales, operating income after tax, average net operating assets, average net financial obligations, and average common shareholders' equity are all included in the data table. The change in RNOA has also been decomposed into components attributable to profit margin and asset turnover. The change in common shareholders' equity was decomposed into components due to sales growth, the change in net assets required to support sales, and changes in borrowing. ROCE increased by 0.58 percent. The financing component had no impact, while the operating component increased by 0.58 percent.
In 2021, Everest Ltd's return on common equity (ROCE) increased to 15.47% from 14.89% in 2020. The change in ROCE is due to both financing and operating activities. The financing component did not contribute to the ROCE change, while the operating component increased by 0.58 percent. The RNOA change was decomposed into two components: profit margin and asset turnover. The increase in RNOA was attributed to an increase in the profit margin. The change in common shareholders' equity was also decomposed into three components: sales growth, the change in net assets required to support sales, and changes in borrowing.

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Related Questions

Principles that help define appropriate behavior in a business setting are?
A business ethics
B business regulations
C corporate culture
D morals

Answers

Answer:

A business ethics

Explanation:

Business ethics provide the moral principles that guide the way a business and its people conduct themselves while transacting. They are the rules that a business should follow while conducting business transactions. Through business ethics, a company is able to formulate standards that regulate employee conduct. Standards make it possible to distinguish what is acceptable or wrong when engaging with customers.

Owners of coffee plantations in the country of Cantonica grow their own coffee beans and supply them to various stores and restaurants all over the country. There are many plantation owners supplying to a huge number of companies, and they are typically unable to differentiate their products from one another. They also do not have the power to fix their own prices in the industry. In addition, these suppliers can only achieve competitive parity and not a competitive advantage. Thus, the coffee bean industry in Cantonica best illustrates a(n) ________ structure.

Answers

Answer:

Perfectly competitive structure

Explanation:

Based on the information we can say that the coffee bean industry in Cantonica best illustrates a(n) PERFECTLY COMPETITIVE structure reason been that this type of competitive structure companies can easily produce their own products and as well supply this product to different stores which makes them to have many small firms .

Secondly PERFECTLY COMPETITIVE structure allow owners of plantation to easily supply their product to different companies which which makes it hard for people to easily differentiate these products from one another.

Thirdly in PERFECTLY COMPETITIVE structure the firm involve have little or no right to increase the price of the product.

Therefore the coffee bean industry in Cantonica best illustrates a(n) PERFECTLY COMPETITIVE structure .

How are college costs different based on the type and location of the school you choose as well as
your room and board arrangement?

Answers

Answer:

If you choose a private university, chances are your tuition is going way up. Prestigious university with accredited programs can also be a bit pricey. Same thing goes for Ivy league schools. Community colleges are relatively inexpensive anywhere you go. Universities in big cities often have a higher tuition if you're considering location. Room and board arrangements differ. If you choose to live on campus in a basic dorm the expense won't be too bad. Colleges could also have the option of off campus housing which is way more expensive and they have different rooms you can choose from. Meal plans are also included in room and board so that's something to consider.

Explanation:

The salesperson may find which of the following tactics used by a buyer a fair deal?
A) budget limitation tactic
B) take-it-or-leave-it tactic
C) let-us-split-the-difference tactic
D) "if...then" tactic
E) "sell low now, make profits later" tactic

Answers

Based on the given options, the salesperson may find the "C) let-us-split-the-difference tactic" used by a buyer as a fair deal.

Here's a step-by-step explanation:

1. Budget limitation tactic (A): This tactic might not be considered fair by the salesperson, as it can restrict the potential for a higher-priced sale, leaving less room for negotiation.
2. Take-it-or-leave-it tactic (B): This tactic might be seen as aggressive and limiting by the salesperson, as it puts pressure on them to accept the buyer's terms without any negotiation.
3. Let-us-split-the-difference tactic (C): This tactic can be considered fair because it involves compromise from both parties. The buyer and salesperson meet halfway, which can lead to a mutually beneficial agreement.
4. "If...then" tactic (D): This tactic might not be considered fair, as it can be manipulative, making the salesperson feel obliged to provide additional value or concessions in order to secure the deal.
5. "Sell low now, make profits later" tactic (E): This tactic might be seen as unfair, as it asks the salesperson to sacrifice immediate profits with the promise of future gains, which might not be guaranteed.
In conclusion, out of the options provided, the salesperson may find the let-us-split-the-difference tactic as a fair deal because it allows for compromise and a mutually beneficial agreement.

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how does increase in productivity result in decrease in cost of production?
please give me a simple answer

Answers

Answer:

Explanation:

say you buy a machine that cost 1 million dollars. The more products you produce with that machine, the cheaper the production cost is.

in helping a client plan viable action steps, it is important for the crisis worker to

Answers

In helping a client plan viable action steps, it is important for the crisis worker to first establish a trusting and supportive relationship with the client.

The worker should actively listen to the client's concerns and validate their feelings to ensure that the client feels heard and understood. Once the client feels comfortable and safe, the worker can then begin to work collaboratively with the client to identify their goals and potential barriers. The crisis worker should help the client break down their goals into smaller, achievable steps, and prioritize them based on the client's level of motivation and urgency. The worker should also encourage the client to identify potential roadblocks or challenges that may arise during the process and brainstorm ways to overcome them.

It is important for the crisis worker to empower the client by allowing them to take ownership of their goals and action steps. The worker should provide support and encouragement, but ultimately the client should be the one driving the process. The worker can also provide resources and referrals to additional support services as needed.

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If you are selling a shirt for $20 and your total costs were $10, your markup in dollars is $10. What is the markup percentage ?

Answers

100%
Good luck hope this helps

the margin of safety for the miter saw is?
A. two inches
B. three inches
C. four Inches
D. six inches

Answers

Answer:

D six inches

Explanation:

Your still cute

Answer: D. Six inches MINIMUM margin of safety at all times.

1. The types of businesses that can operate in a community are regulated by local
A community incentives.
B. zoning laws.
C. chamber of commerce members
D. economic indicators

Answers

Answer:

B. zoning laws.

Explanation:

Zoning laws are regulations put in place by the local authorities that dictate how real estate properties can or cannot be used in different geographical zones. Zoning laws can prohibit or limit properties in certain areas to be used for commercial or industrial purposes. For example, zoning laws may not allow the development of commercial buildings in residential neighborhoods.

Zoning shows whether specific geographic areas are acceptable for commercial purposes.

a rate of growth of real gdp that equals the rate of population growth causes the average standard of living to

Answers

A rate of growth of real GDP that equals the rate of population growth causes the average standard of living to "remain constant".

The rate of growth of real GDP is equal to the rate of population growth, the average standard of living tends to remain constant because the increase in real GDP is offset by the increase in population and per capita GDP that stays relatively unchanged.

Per capita GDP is a measure of the average economic output per person in a country and it means that the increase in goods and services produced is distributed across a larger population which results in a relatively stable average standard of living.

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As an entrepreneur, jill spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative
duties.
OA.
True
OB.
False

Answers

It is false that an enterprenuer, jill will spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative duties.

Who is an enterprenuer?

An entrepreneur is an individual who Identifies a gap or problem and creates a new business around it.

The persons bears most of the risks attached to the business and is more dedicated to the activities, planning and administrative work of the business.

Therefore, It is false that an enterprenuer, jill will spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative duties.

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You should not be descriptive when writing a business letter?

True
False

Answers

Answer:

False

Explanation:

In descriptive writing, the author uses details to express their ideas. They use words to evoke emotions and paint a picture of the message they are trying to convey.  

A business letter should be brief, concise, and clear. The author of a business letter should use as few words as possible to put their message across.  For this reason, descriptive writing is not good for business letters.

Answer:

false

Explanation:

what two trends in the past decade have significantly influenced global marketing?

Answers

The two trends that have influenced global marketing over the past decade have been formal economic integration and free trade between nations.

Global marketing can be defined as a management strategy for organizations that also market their products and services in foreign countries.

Globalization has enabled formal economic integration and free trade between nations, and has created the possibility for companies to increase their profitability and market share.

As an example, we can mention the fast-food chain Mc Donalds, which has a presence almost all over the world, but which adapts its burgers according to local habits.

Therefore, a global company must adopt global marketing, that is, adapt to local customs, culture and preferences for the business to be successful.

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There's a lot to know before you use credit for the
first time. First and most obvious, you have to pay
back what you borrow. Every month you'll have a
due. This is the smallest amount
Select One
you can pay without accruing fees. Because of
interest, you'll have to pay back more than the
Select One
you initially borrowed. You should
also know that there's a ceiling for how much you can
borrow at once. This is called your
Select One
It can be a lot to juggle what
you're spending and what you owe, so a budgeting
method like Select One
I can help you get a
handle on everything.

Answers

Note that in the above credit scenario, this is the smallest amount you can pay without accruing fees.

What are the fees related to credit?

It is the consumer's overall credit cost represented as a percentage of the total credit amount on a yearly basis.

Take note that credit improves your financial flow. It's handy since you don't have to spend a lot of money.

It is extremely useful when you need money for an emergency such as illness, property loss, or death. When you run out of funds, it allows you to buy products that are immediately required.

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from which market is a credit card facility
accessible? options a)money b) capital c) secondary d) stock

Answers

A credit card facility is accessible from the a) money market.

The money market refers to a segment of the financial market where short-term borrowing and lending of funds take place. It is primarily used by participants to meet their short-term liquidity needs. Credit card facilities are a form of short-term borrowing, allowing individuals to make purchases on credit and repay the amount at a later date.

The money market provides a platform for financial institutions, such as banks, to lend funds to individuals through credit cards. These institutions extend credit to cardholders, allowing them to make purchases up to a certain limit. The cardholders then repay the borrowed amount within a specified period, often with interest charges.

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Decreasing the salvage value of equipment from $50,000 to $35,000 is a(n) __.
Multiple choice question.
A - change in accounting estimate
B - change in reporting entity
C- change in accounting principle
D - error correction

Answers

A - change in accounting estimate. Decreasing the salvage value of equipment from $50,000 to $35,000 is considered a change in accounting estimate. Accounting estimates are used to measure the value of assets and liabilities on financial statements, and they can be adjusted over time to reflect changes in circumstances.

In this case, the salvage value of the equipment was revised downward, which means that the estimated value of the asset at the end of its useful life has decreased. This change is not related to a change in reporting entity or accounting principle, and it is not an error correction since there was no mistake in the original estimate. Instead, it is a reflection of updated information or new assumptions about the equipment's value. A change in accounting estimate is a revision to an estimate used in the financial statements that is made in light of new information or improved estimation techniques.

This type of change is recognized prospectively, which means that it affects future financial statements but does not require restatement of prior periods. A change in reporting entity, on the other hand, occurs when a company presents its financial statements in a different way, such as consolidating subsidiaries or changing the level of aggregation. A change in accounting principle involves a shift from one accepted accounting method to another, such as moving from straight-line to accelerated depreciation. Finally, an error correction is a restatement of prior periods due to a mistake in the original financial statements.

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Teams have better communication than other workers because they get to
a. Know each other better
b. Attend commurication seminars
C. Earn extra benetits packages
d. Use better telephones

Answers

B lol ur welcome very much ok

Which of the following will be accomplished by efficient allocations of the factors of production?

guaranteeing economic success
understanding whether a product will fail
fulfilling many needs and wants of society
replenishment of limited resources

Answers

Answer:C

Explanation: Just took the test:)

What will be accomplished by efficient allocations of the factors of production is fulfilling many needs and wants of society

What are factors of production?

factors of production can be regarded as those factor that make production possible such as capital and land.

Therefore, fulfilling many needs and wants of society is one of beauty of production.

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All else equal, the contribution margin must increase as:
A. Both Sales price and variable cost per unit increase.
B. The fixed cost per unit declines
C. The variable cost per unit declines
D. Sales price unit declines
E. The sales price minus the fixed cost per unit increases.

Answers

The correct answer to the question is A. Both sales price and variable cost per unit increase.When both the sales price and variable cost per unit increase, the contribution margin increases as well.



The contribution margin is the difference between the sales price per unit and the variable cost per unit. It represents the amount of money left over after covering the variable costs, which contributes towards covering the fixed costs and generating profit.

When both the sales price and variable cost per unit increase, the contribution margin will also increase. This is because the difference between the sales price and variable cost per unit becomes larger, resulting in more money left over to cover the fixed costs and generate profit.

For example, let's say a company sells a product for $10 per unit and the variable cost per unit is $5. In this case, the contribution margin would be $10 - $5 = $5 per unit.

If the company increases the sales price to $15 per unit and the variable cost per unit to $8, the contribution margin would increase to $15 - $8 = $7 per unit. This means that the company has more money left over per unit to cover the fixed costs and generate profit.

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Cara Fabricating Co. and Taso. Corp. agreed orally that Taso would custom-manufacture a compressor for Cara at a price of $120,000. After Taso completed the work at a cost of $90,000, Cara notified Taso that the compressor was no longer needed. Taso is holding the compressor and is demanding payment from Cara. Taso has been unable to resell the compressor for any price. Taso incurred storage fees of $2,000. If Cara refused to pay Taso and Taso sues Cara, what is the most damages Taso will be entitled to recover

Answers

H⁣⁣⁣⁣ere's l⁣⁣⁣ink t⁣⁣⁣o t⁣⁣⁣he a⁣⁣⁣nswer:

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the five characteristics of an innovation that help determine the rate of consumer acceptance (or resistance) are:

Answers

The five characteristics of an innovation that help determine the rate of consumer acceptance (or resistance) are relative advantage, compatibility, complexity, trialability, and observability.

Relative advantage refers to the degree to which an innovation is perceived to be better than the existing alternatives. If an innovation offers a significant advantage, consumers are more likely to adopt it quickly.
Compatibility refers to the degree to which an innovation is perceived to be consistent with the existing values, experiences, and needs of potential adopters. If an innovation is compatible with consumers' existing beliefs and habits, they are more likely to adopt it.
Complexity refers to the degree to which an innovation is perceived to be difficult to understand and use. If an innovation is perceived as too complex, consumers may resist adoption.

Trialability refers to the degree to which an innovation can be tested on a limited basis. If consumers are able to try out an innovation before fully committing to it, they may be more likely to adopt it.
Observability refers to the degree to which the results of an innovation are visible to others. If the benefits of an innovation are highly visible, consumers may be more likely to adopt it.
Overall, the five characteristics of an innovation are important considerations for businesses and marketers when introducing new products or services to the market. By understanding these characteristics and how they influence consumer adoption, businesses can better position their innovations for success.

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How the business can use creative thinking to solve business problems ​

Answers

Explanation:

Creative thinking helps you to see opportunities in the marketplace or come up with a unique solution to a problem—and isn’t this the cornerstone of any business?

Creativity is key to innovation. When issues come up, you’ll be able to think of ways over, under, or through the roadblocks.

Creativity stimulates the brain and helps us to wake up and pay attention. Noticing more of what’s around us aids in developing novel approaches to help your business stand out.

Creative thinking helps you keep your business presence fresh. You’ll be able to constantly reinvent your business in order to stay in your customers’ awareness.

Creativity helps you shift your perception so you can better understand your customers’ point of view.

Creativity gives you a higher tolerance for risk—you’re used to working through fear of failure.

Creativity improves your leadership skills. Being an effective leader means being creative in your approach and problem-solving. When you have the capacity to let go of the outcome and be open to out-of-the-box thinking, you free your business team up for generating new ideas.

Creativity helps you to broaden your vision of what it means to be successful in your  business—what it can offer to the world.

Creativity strengthens your resilience. When those inevitable stressful periods come up, you’re able to bounce back faster instead of getting derailed.

Creativity invites flow and feels good, and when you feel good, you attract your ideal customers and clients.

Can you creatively think of even more ways that creativity can help your business?

bob has $2,500 invested in a bank that pays 5.4% annually. how long will it take for his funds to double?

Answers

Answer: IT IS 5,000

Explanation:

Which of the following describes a conflict which happens between a supervisor and a subordinate?
O Intrapersonal conflict
Group conflict
O Intergroup conflict
O Interpersonal conflict

Answers

A conflict between a supervisor and a subordinate can be described as  Interpersonal conflict.

What is interpersonal conflict?

Interpersonal conflict refers to conflict whereby there are at least two people involved. This means that interpersonal conflict refer to issues that a person has with another person, or group of people.

When there is a conflict between a supervisor and a subordinate, these are two different people which means that it is therefore an interpersonal conflict. Intrapersonal conflict on the other hand, refers to when a person has a conflict within themselves about how they should take certain decisions.

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Any of the following could be considered business equipment except:

A. buildings
B. machines
C. tools
D. vehicles

Answers

Answer:

buildings

Explanation:

because they aren't equipment

When a nation exports a good, its surplus increases, and when it imports a good, its surplus increases.a) consumer; consumerb) producer; producerc) producer; consumerd) consumer; producere) total; producer

Answers

Option d: When a nation exports a good, its consumer surplus increases, and when it imports a good, its producer surplus increases.

Importing goods increases both producer surplus and total national surplus.

Surplus is the amount of resources or goods available compared to the amount actually used. Income, earnings, capital, and products are just a handful of the many items that may be considered surplus. Unsold inventory on the shelves is called surplus.

When you cover your expenses and get your income, you end up with a budget surplus. Governments can also have a budget surplus if additional tax revenue remains after all programs are fully funded.

Having extra stuff is not always a good thing. For example, a manufacturer that overestimates future demand for a particular product may produce an excessive number of unsold units.  

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Complete question:

When a nation exports a good, its ________ surplus increases, and when it imports a good, its________ surplus increases.

A) consumer; consumer

B) producer; producer

C) producer; consumer

D) consumer; producer

E) total; producer

context of Theory Y managers in China, managers who are skilled in the management of people and possessing political and ideological expertise are called

Answers

Context of Theory Y managers in China, managers who are skilled in the management of people and possessing political and ideological expertise are called the reds.

People are self-motivated and love the challenge of work, according to theory Y. With this presumption, managers foster a closer working relationship with their staff members and inspire them by giving them the freedom to act independently, take on responsibility, and make decisions.Working hard both physically and mentally comes as naturally to individuals as sleeping or playing. Coercion, control, and punishment threats are important to motivate people to meet organizational goals.

What is the Theory Y approach?According to Theory Y, managers should foster an environment at work where workers have the chance to exercise initiative and self-direction. Opportunities for employees to contribute to the success of the company should be provided.

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the direct consumers of the product are the client public. target markets are defined much more easily. goods are marketed more often than ideas or services. the techniques used by for-profit organizations to define target markets cannot be applied. development of a marketing strategy should focus on the general public.

Answers

Answer:

This question is incomplete, the questions itself is missing. The correct question is the following:

"In nonprofit organizations," ...

And the correct option is the first one: The direct consumers of the product are the client public.

Explanation:

To begin with, the nonprofit organizations are those that focus on the fact of giving its service or product to the public in general because there is an extremely importance in the good itself so that is why that the organization focus on reaching every member of the community because the product or service should be at the reach of all. And that is why that in the nonprofit organizations the direct consumers of the product or service are the client public.

What are some unethical practices of consumers?

Answers

Using a coupon for things you haven't bought, stealing modest consumer goods, and eating products in-store without paying for them are all examples of unethical consumer behavior.

What is ethical and unethical in business?

Good and evil behavior is distinguished by ethics. Ethical and immoral are adjectives, thus they can be used in front of phrases like problems, behavior, practices, and so on. All of these are connected to how people behave or conduct their private lives. Morally corrupt behavior is what we call unethical.

Equity, rights, honesty, and the use of corporate power are the four categories into which ethical behavior in business can be separated. Business enterprises must balance their obligations to their customers, shareholders, employees, and the general public. Consequently, the discipline includes social, personal, business responsibility, loyalty, fairness, respect, trustworthiness, and technology ethics.

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What is interpersonal skills for kids?

Answers

Early childhood development is reliant on interpersonal interactions, and these interactions have an effect that goes beyond the early child's life, influencing future learning and development at the cognitive, linguistic, socioemotional, and physical levels.

The care provided will support the child's best growth pathways, promoting their future participation in society and optimal functioning. Caregivers who are conscientious and recognize the importance of their contacts with the kid in the early years of life.

According to Bronfenbrenner and Evans, children learn and develop as a result of their interactions with their surroundings. Also widely known and supported by the results of epigenetic studies is the impact of early experiences on the structure and operation of the brain.

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