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nataly862011 [7]
3 years ago
15

had $18,750 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 9.5%, a

nd the federal-plus-state income tax rate was 40%. What was HHH's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the year
Business
1 answer:
Allisa [31]3 years ago
5 0

Answer:

$1,503.75

Explanation:

Sales $12,500

Operating costs $7,025

Operating income (EBIT) $5,475

WACC 9.5%

Tax rate 40%

Investor-supplied capital $18,750

EVA = EBIT(1 - T) - Investor Capital × WACC

EVA = $3,285.00 -$1,781.25

EVA = $1,503.75

Therefore the management add $1,503.75 value to stockholders' wealth during the year.

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One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and
hichkok12 [17]

GATT  is a very common term in business. One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and Trade.

<h3>What is the meaning of GATT?</h3>

The word simply means General Agreement on Tariffs and Trade. This  General Agreement is known to covers international trade in goods.

They are involved in Trade negotiations. The WTO is regarded as the successor to the General Agreement on Tariffs and Trade (GATT) set up after the Second World War.

Learn more about GATT from

brainly.com/question/7141880

5 0
2 years ago
At December 31, year 3 , Bren Co. had the following deferred income tax items: • A deferred income tax liability of $15,000 rela
ahrayia [7]

Answer:

(B) A noncurrent liability of $4,000

Explanation:

The non-current liability in respect of deferred tax shall be recognised in the accounts of Bren Co. as at December 31 as follows:

Deferred income tax liability related to non-current assets= $15,000

Deferred income tax asset related to non-current liability = ($3,000)

Deferred income tax asset related to current liability         = ($8,000)

Deferred income tax liability to be recorded at year end   = $4,000

So based on the above discussion the answer is (B) A noncurrent liability of $4,000

8 0
4 years ago
LO 3.4If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin products, the break-e
kompoz [17]

Answer:

Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.

Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:

Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1

If the contribution per unit has been decreased the breakeven will rise.

Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.

Option 3 is 100% right because equation 1 is

Breakeven Point=Fixed Cost/ Contribution per unit

Which says

If the contribution per unit has been decreased the breakeven will rise.

Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases

which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.

5 0
3 years ago
Se the following account balances from the adjusted trial balance of Gees Catering:
S_A_V [24]

Answer:

The amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year is $8,000

Explanation:

For computing the ending balance of capital account, first, we have to compute the net income or loss which is shown below:

Net income/loss = Fees revenue - salary expense - rent expense - supplies expense

= $10,000 - $7,000 - $6,000 - $6,000

= ($19,000)

Now the ending balance would be

= Opening capital - net loss -  drawings

= $18,000 - $9,000 - $1,000

= $8,000

8 0
3 years ago
Wade Corp. has 150,000 shares of common stock outstanding. In 2020, the company reports income from continuing operations before
Arisa [49]

Answer:

just get rid of this answer

Explanation:

8 0
3 years ago
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