Available Options Are:
a. Increasing ROIC by increasing return on sales
b. Decreasing ROIC by increasing return on sales
c. Decreasing ROIC by decreasing return on sales
d. Increasing ROIC by decreasing return on sales
Answer:
Option C. Decreasing ROIC by decreasing return on sales
Explanation:
The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:
ROCI = Operating Income (1 - Tax Rate) / Book Value of Invested Capital
As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numenator would be decreased and as a result the ROCI would decrease.
Answer:
The answer is:
10% fixed rate = Company X's external borrowing (rate);
11.8% fixed rate = Company Y's payment to X (rate);
LIBOR + 1.5% = Company X's payment to Y (rate);
LIBOR + 1.5% = Company Y's external borrowing rate.
Explanation:
First, X will borrow at 10% fixed and Y will borrow at LIBOR + 1.5% floating; both at notational principal of $10 million.
Then; they will enter into a interest swap where:
- X will pay to the swap the interest rate of Libor +1.5% and receive from the swap the fixed interest rate of 11.8%. Thus, X interest income and interest expenses will be: Borrowed at fixed 10% and payment at Libor+1.5% to the swap; Receipt of 11.8% from the Swap=> Net effect: X borrowed at LIBOR - 0.3% ( saving of 0.3%).
- Y will pay to the swap the fixed interest rate 11.8% and receive from the swap LIBOR +1.5%. Thus, Y interest income and interest expenses will be: Borrowed at LIBOR +1.5 and payment 11.8% fixed to the swap; Receipt of Libor + 1.5% from Bthe Swap=> Net effect: Y borrowed at 11.8% fixed ( saving of 0.2%).
Consumer goods satisfy wants directly, while capital goods satisfy wants indirectly.
<h3>What are
capital goods and consumer goods?</h3>
Capital goods are goods that are used to produce goods and services. They cannot be consumed directly. An example is machinery. Consumer goods are goods that can be consumed directly. An example is bread.
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Answer:
At the end of July, the amount of outstanding checks on July's bank statement is $18000. Sp, option b is the correct answer.
Explanation:
The opening balance of the outstanding checks is $5400.
In July, after the issuance of further checks, the balance of the outstanding checks would have increased to 5400 + 38900 = $44300
The closing balance of outstanding checks at the end of July are,
Closing balance = Opening balance + Checks issued - Checks cleared
Closing balance = 5400 + 38900 - 26300
Closing balance = $18000
The purpose of writing and reviewing accurate and complete incident reports is to prevent recurrences of that incident.
The definition of an incident is something that in all likelihood takes place because of some thing else. An instance of an incident is seeing butterflies whilst taking walks. An example of a case is a person going to prison after being arrested for shoplifting.
The time period incident may be described as an event, situation, or circumstance that takes place at some stage in paintings and outcomes in or may also result in injury, illness, contamination, or death.
An “incident” is an surprising prevalence that doesn't bring about extreme loss or injury. A “coincidence” is an unforeseen event that causes breakage, damage, or harm.
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