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A company that has a profit can increase its return on investment by?
Wiki User
∙ 13y ago
Increasing sales revenue and operating expenses by the same percentage.
Wiki User
∙ 13y ago
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What are explanation of maximization of shareholders profit?
explain how to make the most money (profit) for stock owners of a company. A return on their investment.
Formula for average rate of return?
Average rate of return=Average profit /Initial investment*100% or ARR=Average profit /Average investment*100% or ARR=Total profit /Initial Investment*100%
How to maintain company's return on shareholder's equity with a decline in a net profit margin?
increase the company's total assets.
Why is it a companies objective to increase profit and market share?
A company has to expand year on year to satisfy those who have invested in the company. This investment is normally through purchasing shares, if the company is listed on the stock market, or by buying a direct share in the company. This could be either the directors of the company,employees, or private investors. A dividend is paid to share holders based on the companies performance. This is very important to the investors because it offers a return on their investment . The share price of a company will increase if the company is making good profit on the assets it is selling. This will also please the share holders because their investment will have increased in value.
How is the concept of a normal return on investment related to the distinction between business and economic profit?
Economic profit is the profit made on an investment of some sort in which inflation and other economic factors have been considered. Normal return on investment is just the net profit made in the investment (simple subtraction).
Return On Investment in fmcg?
Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)
What are the main functions of the dividends and profits?
Dividends are those where you get from the profits . dividend is that share or a part of profit of a company which is distributed among the share holders . if the the company gets more profit you can expect more return on your investment.
Would the electric company most likely be a profit or nonprofit corporation?
An electric company can be either profit or non-profit. If it is listed on the stock exchange, it has shareholders who expect a profitable return on their investment. If it is a Co-op, or consumer/customer owned, then it is non-profit and operated for their benefit as opposed to a profit.
How is profit productivity measured?
Productivity is closely related to, but not dependent on, profit. It can be measured by return on investment (ROI).
What is the difference between returns and profit?
return is calculate against investment. profit is calculte against cost.
What do you call money return a stockholder receives on his or her investment in a company?
The money a company periodically pays out is called a dividend. The money a stockholder receives by selling a share of stock is simply a return on their investment. (This may be a profit or loss, depending on whether the stock price has gone up or down while they held it).
When using the net present value method for evaluating an investment an increase in the required rate of return will?
The increase in rate of return will make the investment more difficult to be accepted.
