Answer:
b. 12.0%
Explanation:
ROI=Net operating income/Avg operating assets = 164640/1372000 = 12%
Answer:
The answer is: O'Brien's MVA is $12,000,000
Explanation:
We first take the total book value of equity $20,000,000
Then e calculate the market value of the company (stock price per share times shares outstanding) = $32 per share x 1,000,000 shares = $32,000,000
The market value added (MVA) is the difference between market value and equity value:
MVA = $32,000,000 - $20,000,000 = $12,000,000
Answer:
You didn't post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.
Explanation:
The net present value method is based on two assumptions. These are:
1.The cash generated by a project is immediately reinvested to generate a return at a rate that is equal to the discount rate used in present value analysis.
2. The inflow and outflow of cash other than initial investment occur at the end of each period.