1. Explain why Amazonrd has a HIGHER / LOWER ROE than Walmart by breaking ROE down into the Debt Ratio, Profit Margin and Total Asset Turnover; i.e. what ratio(s) drove ROE to be different.
Example: ROE = (PM x TAT) / (1 – (D/A)) 40% = (2% x 5) / (1 - .75)
2. Identify, analyze, and assess ethical issues in different business functions.
3. On December 1, you borrow $210,000 to buy a house. The mortgage rate is 8.25 percent. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on January 1. Which one of the following statements is true assuming that you repay the loan as agreed?