Answer:
Capital turnover = 2.5 times
Explanation:
given data
Sales = $2,000,000
Operating income = $400,000
Total assets = $800,000
Current liabilities = $120,000
Target rate of return = 13%
Weighted average cost of capital = 6%
to find out
Portland Porcelain Works Coffee Mug Division capital turnover
solution
we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets
so
Capital turnover = 
......................1
put here value
Capital turnover = 
Capital turnover = 2.5 times
Answer:
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Answer:
The answer and procedures of the exercise are attached in the following archives.
Explanation:
Consider this explanation too
The IRR is the project’s expected rate of return, assuming that intermediate cash flows also earn the IRR. If this return exceeds the cost of the capital invested in the project, the excess value goes to the firm’s shareholders. Therefore, independent projects whose IRR is greater than the WACC should be accepted.
Therefore in this case WACC of the project is 7% and IRR of the project is 1.86% which is less than WACC of the project. Hence the firm reject the project delta.
Calculation of IRR is based on Cash inflows and outflows for the number of years so that increase in cost of capital will not affect IRR.
Answer:
The minimum deposit will be of 3,081 and after 40 year it will get 1,000,000 dollars
Explanation:
We have to solve for the C of an annuity growing
g 0.05
r 0.06
C 3,081
n 40
Answer:
12.8%
Explanation:
Ra=Rf+(Rm-Rf)*Ba
Ra=?
Rf=5.5%
Rm=11.5%
Ba=1.22
Ra=5.5%+(11.5%-5.5%)*1.22
Ra=12.8%
