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elixir [45]
3 years ago
7

Barton Industries has operating income for the year of $3,100,000 and a 38% tax rate. Its total invested capital is $20,000,000

and its after-tax percentage cost of capital is 5%. What is the firm's EVA
Business
1 answer:
Bas_tet [7]3 years ago
8 0

Answer:

$922,000

Explanation:

Operating income after tax = $3,100,000 - ($3,100,000 × 38%) = $1,922,000

Annual cost of dollar = 20,000,000 × 5% = 1,000,000

EVA = Operating income after tax - Annual cost of dollar = 1,922,000 - 1,000,000 = $922,000

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Freemore Corp. projected sales for the last 6 months of next year: July $206,000 October $181,000 August 168,000 November 203,00
Rzqust [24]

Answer:

$188,170

Explanation:

Cash collection in a month includes the collection of current and prior years's of credit sales.  

Cash Collection for September is $188,170.

It includes 7% collection of July sales, It includes 35% collection of August sales and It includes 55% collection of September sales.

Schedule for Cash Collection is attached with this answer please find it.

Download pdf
7 0
3 years ago
You are the CFO of Designer Brands and expect your firm to generate FCFs of $550,000 per year (starting next year) for 10 years.
Lemur [1.5K]

I would value the Designer Brand as $16,970,189.21.

<h3>What is the value of the designer brand?</h3>

The value of the designer brand can be determined using the two-stage FCF growth model.

FCF each year from year 1 to 10 = $550,000

FCF from year 11 = ($550,000 x 1.01) / (0.04 - 0.01) = $18,516,666.67

The present value of the FCF would be determined next:

($550,000 / 1.04) + ($550,000 / 1.04^2) + ($550,000 / 1.04^3) + ($550,000 / 1.04^4) + ($550,000 / 1.04^5) + ($550,000 / 1.04^6) + ($550,000 / 1.04^7) + ($550,000 / 1.04^8) + ($550,000 / 1.04^9) + ($550,000 / 1.04^10) + ( $18,516,666.67 / 1.04^10) = $16,970,189.21

To learn more about FCF, please check: brainly.com/question/8058024

3 0
1 year ago
If a company is studying the decision processes and actions of people who purchase and use products, the company is focusing on
krok68 [10]
Consumer buying behavior.
3 0
3 years ago
What is journal entry is goods return to sanjay​
liq [111]
Two Types of Goods Return:

Purchases Return or Return outward.
Sales Return or Return inward.
Purchases Return Goods

For Examples :

Purchases goods from Mrs. Kuheli Rs. 2000
5 0
2 years ago
All of these are pitfalls an organization should avoid in strategic planning except:_____________.1. using plans as a standard f
Tamiku [17]

Answer:

1. using plans as a standard for measuring performance.

Explanation:

Strategic planning is an important process that enables a business or an organization to have a sense of direction, goal orientation, and also enables them to evaluate and measure progress.

It is important when carrying out the strategic planning process to first focus on clarifying and developing the vision, mission and objectives of the business before moving on to strategy formulation, this helps to give a sense of direction.

In the process of strategic planning, involving key employees cannot be overemphasized. Giving key employees the chance to be involved in the planning process will enable them to connect to the business and set them up for success.

Apart from the fact that strategic planning provides a sense of direction, it also enables a business to outline goals that can be measured, hence providing a standard for measuring performance.

3 0
3 years ago
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