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mash [69]
3 years ago
14

Casey Motors recently reported net income of $148 million. The firm's tax rate was 40.0% and interest expense was $46 million. T

he company's after-tax cost of capital is 11.0% and the firm's total investor supplied operating capital employed equals $1,036 million. What is the company's EVA? (Answers are in $ millions.)
Business
1 answer:
HACTEHA [7]3 years ago
3 0

Answer:

$61,640,000

Explanation:

Earning before tax:

= Net income ÷ 60%

= $148,000,000 ÷ 60%

= $246,666,667

EBIT:

= Earning before tax + Interest expense

= $246,666,667 + $46,000,000

= $292,666,667

EVA:

= EBIT(1 - t) - (Capital employed × cost of capital)

= $292,666,667(1 - 0.4) - ($1,036,000,000 × 11%)

= $175,600,000 - 113,960,000

= $61,640,000

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Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to proudcts. Mnaufacturing over
tatyana61 [14]

Answer:

2040.

Explanation:

To reach the total manufacturing cost we need to calculate machining and assembling overhead rate first, in order to calculate the rate we need to divide manufacturing overhead cost on number of hours

Machining OH rate = 280000 / 50000 = 5.60  

Assembling OH rate = 360000/40000 = 9.00

 

manufacturing cost:    

                    machine Assembly Total  

Material  425                175             600  

labor               275                300             575  

Overhead                                                 865  

(50*5.60)       280

(65*9)             585            

Total cost                                               2040  

5 0
3 years ago
The University of Puhonicks hires several professors that specialize in accounting, management, and economics and clusters each
ANTONII [103]

Answer:

b) Function

Explanation:

The Dean placed professors in departments based on the subjects they teach or based on their functions in the school. So all professors that function as economics professors are placed in the same department. This is an example of grouping employees by functions.

In geographic grouping, professors would be grouped based on the different regions they teach.

In product grouping, employees are placed in groups based on the product they produce.

I hope my answer helps you

3 0
3 years ago
other students in school learn that you are making money by selling bracelets. they decide to open their own bracelet businesses
vampirchik [111]
Well there's more competition, because you're not the only one who sells bracelets anymore
5 0
4 years ago
Read 2 more answers
Your brother has asked you for a loan and has promised to pay you $9,800 at the end of three years. If you normally invest to ea
VMariaS [17]

Answer:

PV= $8235.817383

Explanation:

Giving the following information:

Your brother has asked you for a loan and has promised to pay you $9,800 at the end of three years. You normally invest to earn 6.40 percent per year.

FV= $9,800

i= 0.064

n= 3

Present Value=?

We need to use the present value formula:

PV= FV/(1+i)^n

PV= 9800/(1.064^3)= $8235.817383

7 0
3 years ago
The account receivable turnover measures:
statuscvo [17]

Answer:

The answer is B.

Explanation:

Accounts receivable turnover is the number of times per period(quarterly, semiannuallly or yearly) that a business

or firm collectss its average accounts receivable. The ratio is used to evaluate the firm's ability to efficiently sell on credit and collect money from its customers in a timely manner.

A lower number of turnover depicts higher efficiency.

Therefore, the correct answer is B. It measures how frequent, on average, receivables are received and collected during the period

6 0
3 years ago
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