Answer:
The human capital theory
Explanation
The human capital theory explores the relationship between investment in human capital and earnings.
Investment in human capital can take the form of education or training.
The theory suggest that those that invest in human capital earn higher income
The human capital theory also explores pattern of earnings. The theory suggests that the earnings of young people would be low as they would forgo earnings to invest in human capital . Earnings would increase as one gets older because old people invest less in education and training
Answer:
A.) Firm B must have a higher ROE than first A.
Explanation:
Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.
Interest expense is the amount that is paid to service a loan.
This implies that company B has higher loan portfolio than Company A.
Considering the accounting formula
Equity= Asset- Debt
So an increase in debt will result in a decrease in equity.
Return on equity= Net income/Equity
It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.
Answer:
$56,130
Explanation:
Calculation to determine what the amount of itemized deductions the Gibsons may claim for the year is
Stuart and Pamela Gibson
Casualty loss $17,430
[$53,200 – (10% × $357,700)]
Home mortgage interest 21,280
State tax 10,000
(18,000 income and 16,300 property
Limited to 10,000)
Charitable Contributions 28,700
Total itemized deductions $56,130
Therefore the amount of itemized deductions the Gibsons may claim for the year is $56,130
Hello,
Stocked based and boned-based mutual funds is the correct answer. Mutual funds are investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks bonds, or other securities that might be difficult to recreate on your own.
Answer:
a. 1.11%
Explanation:
The computation of the maximum sales growth rate is shown below:-
Sales 90% Capacity = $850,000,000
Sales at 100% Capacity = $850,000,000 ÷ 90% × 100%
= $944,444,444.4
Growth in Sales by using unused capacity = Sales at 100% Capacity - Sales 90% Capacity
=$944,444,444.4 - $850,000,000
= $94,444,444.4
Growth rate =Growth in Sales by using unused capacity ÷ Sales last year
-94444444.4 ÷ $850,000,000
= 1.11%
