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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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Athletes who train at high altitudes increase their red blood cell count and thus increase their oxygen supply during exercise.
kkurt [141]
<span>Athletes who train at high altitudes increase their red blood cell count and thus increase their oxygen supply during exercise. Increased oxygen supply results in more amount of oxygen laden blood supply to the muscles of the body.</span>
3 0
3 years ago
Read 2 more answers
Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. On February 1, 2013, sh
Sunny_sXe [5.5K]

Answer:

<h3>Cynthia and Dove Corporation</h3>

Any profits generated by Dove Corporation will be taxed to the corporation and also taxed to Cynthia as a shareholder whenever Dove distributes the profits as dividends. Taxing Dove and Cynthia creates a double taxation burden for both Dove and Cynthia. Dove Corporation does not get a tax deduction when it distributes dividends to Cynthia.  Furthermore, Cynthia cannot deduct any corporation loss when incurred.  These are unlike when the business was only a sole proprietorship.

Explanation:

a) Data and Calculations:

Dove Corporation

Balance Sheet

February 1, 2013

Assets

                                                    Basis to Dove     Fair Market Value

Cash                                                 $ 80,000              $ 80,000

Accounts receivable                         0                           240,000

Equipment (cost $180,000;              120,000               320,000

depreciation previously claimed $60,000)

Building (straight-line depreciation) 160,000              400,000

Land                                                    40,000               160,000

Total                                               $400,000          $1,200,000

Liabilities and Stockholders' Equity

Liabilities:

Accounts payable—trade            $ 120,000

Notes payable—bank                    360,000

Stockholders' equity:

Common stock                              720,000

Total                                          $1,200,000

4 0
2 years ago
Which of the following changes in the loanable funds market will decrease the equilibrium real interest rate?
LuckyWell [14K]

Answer:

The answer is Option C

Explanation:

Any event that would either decrease the demand for loanable funds or increase the supply of loanable funds will decrease the equilibrium interest rates. Supply of loanable funds is affect by the amount of national savings. National savings in turn, is the sum of private savings, public saving and net capital inflow.

In option C, capital inflows are increasing. This means that there would be an excess supply of money in the economy which can be converted into loanable funds. This would, therefore, push the supply curve to the right thereby reducing the real interest rate equilibrium.

7 0
3 years ago
What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rat
kotykmax [81]

Answer:

The correct answer is letter "B": dividend growth.

Explanation:

A dividend is a cash distributed by a company to its shareholders. The dividend growth is the rate that measures the increase in a dividend given a certain period, typically calculated in the term of one year. The dividend growth is also considered a gauge that may predict the future continuation of the behavior of profits within a company. In that sense, it can influence the current price of a stock and the discount rate as well.

5 0
3 years ago
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $3,500 under each of the fol
Katena32 [7]

Answer:

a. The first payment is received at the end of the first year, and interest is compounded annually.

present value = annual payment x PVIFA

annual payment = $3,500

PVIFA, 12%, 5 periods = 3.6048

present value = $12,616.80

b. The first payment is received at the beginning of the first year, and interest is compounded annually.

annual payment = $3,500

PVIF annuity due, 12%, 5 periods = 4.0373

present value = $14,130.55

c. The first payment is received at the end of the first year, and interest is compounded quarterly.

present value = annual payment x PVIFA

annual payment = $3,500

effective interest rate = 1.03⁴ - 1 = 12.55%

PVIFA, 12.55%, 5 periods = 3.5562

present value = $12,446.70

7 0
2 years ago
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