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antoniya [11.8K]
3 years ago
6

Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000

and its after-tax percentage cost of capital is 5%. What is the firm's EVA? Round your answer to the nearest dollar, if necessary.
Business
1 answer:
rusak2 [61]3 years ago
4 0

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes  - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% =         (900,000)  Required Return

                                        1,875,000 Economic Value Added

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A fund manager is considering three mutual funds. The 1st is a stock fund, the 2nd is a long-term government and corporate bond
Vinil7 [7]

Answer:

Expected return is: 7.37% and the Standard deviation is: 24.96%

Explanation:

Correlation between fund S&B=0,0667

Standard Deviation of Fund S=41%

Standard Deviation of Fund(B)=30%

E(R) of Stock Fund S=12%

E(R) of Stock Fund B=5%

Covariance between the funds = Standard Deviation of Fund(B) × Standard Deviation of Fund S × correlation between these funds

Cov = 0.41 × 0.30 × 0.0667 = 0.008204

Now minimum variance portfolio is found by applying:

W min(S)=(SDB)^2-Cov(B,S) / ((SDS)^2+(SDB)^2-2Cov(B,S)

W min(S) = 0.338431

W min(B) = 1-0.338431=0.661569

1) E(r)min= 0.338431 × 12% + 0.661569 × 5% = 7.37%

2) Standard Deviation:

SD Min = (Ws^2XSDs^2+Wb^2XSDb^2+2XWsWb*Cov(s,B)^1/2

SDmin=(0.338431^2 × 0.41^2 + 0.661569^2 ×   0.3^2   + 2 × 0.338431 × 0.661569 × 0.008204)^1/2

SDmin=24.96%

8 0
3 years ago
Timothy is looking for suppliers for his cheese-making business. He examines a list of suppliers whom he can contact with a busi
elixir [45]

Answer: Supplier selection process

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Supplier selection process is the scenario where an individual or a company wants to purchase an item and they contact various vendors who do such business, and asking them for prices, details; generally the requirements for the items they want, they now choose out of the various vendors options, that which matches what they want.

Timothy is in the supplier selection process, where he's evaluating every detail from the vendors based on his request, with an option to request from any of them that matches his request.

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A popular television show, the unexpected, achieved skyrocketing ratings after moralist tom bowman attempted to have it removed
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This is an example of mass selling through publicity.
The show may not have been that much popular before Tom Bowman wanted it gone, however, after he asked for its removal from the air, people were interested to see why that is so, which is why it gained many new followers instead of losing its old ones.
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3 years ago
A market ______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. multip
jeyben [28]

A market product growth strategy focuses on increasing sales of the firm's current products to its current target markets.

A product growth strategy increases sales looking all the prospects of the department rather than focus on only one department of the firm. It develops the firms production process in all aspects.

The strategy is made and planned according to the current market conditions to achieve its desired targets and get the maximum profit out of the production process that is taking place in the firm which in turn increase sales of the firm by increasing consumers demand.

To learn more about product growth strategy here,

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8 0
1 year ago
Help pls
Gwar [14]

Answer:

Why should a research check that their information is reliable?

It is important to critically evaluate sources because using credible/reliable sources makes you a more informed writer. Think about unreliable sources as pollutants to your credibility, if you include unreliable sources in your work, your work could lose credibility as a result.

How do you determine the validity and reliability of data?

Reliability can be estimated by comparing different versions of the same measurement. Validity is harder to assess, but it can be estimated by comparing the results to other relevant data or theory.

How do you, as a student, organize information?

Students arrange information hierarchically, cate- gorically, sequentially, or in other ways. They discover and depict the overall structure of the material as well as how discrete pieces of information fit together. They organize and reorganize generalizations, principles, concepts, and facts.

Why should a researcher organize their data?

Choosing a logical and consistent way to name and organise your files allows you and others to easily locate and use them. ... Organising your files carefully will save you time and frustration by helping you and your colleagues find what you need when you need it.

What are different methods for organizing information?

Chronological Patterns. Sequential Patterns. Spatial Patterns. Compare-Contrast Patterns. Advantages- Disadvantages Patterns. Cause-Effect Patterns. Problem-Solution Patterns. Topical Patterns.

What does it mean to analyze information?

Information analysis is the systematic process of discovering and interpreting information.

What is the benefit of analyzing information?

Analysis is the process of breaking a complex topic or substance into smaller parts in order to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (384–322 B.C.), though analysis as a formal concept is a relatively recent development.

Why is it important to analyze information before making a decision?

Before analyzing data, it is important to first clearly understand for whom and for what purpose you are conducting the analysis. ... Therefore, conducting the analysis to produce the best results for the decisions to be made is an important part of the process, as is appropriately presenting the results.

now i hope this helps you

3 0
2 years ago
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