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3 years ago

A food manufacturer reports the following for two of its divisions for a recent year.

Business

1 answer:

Mashutka [201]3 years ago

8 0

Answer:

a. Return on Investment

ROI= Operating income/Average invested assets

Beverage Division ROI = 358 / (2,680+2,602) /2

= 358 / 2,641

= 0.13555

= 13.56%

Cheese Division ROI = 643 / (4,473 + 4,409)/2

= 643 / 4,441

= 0.14478

= 14.48%

b. Profit margin

Profit Margin= Operating income / Sales

Beverage Division = 358 / 2690

= 0.13309

=13.31%

Cheese Division = 643 / 3934

= 0.16345

= 16.35%

c. Investment turnover for the year

Investment turnover = Sales / Average invested assets

Beverage Division = 2690 / 2641 = 1.02

Cheese Division = 3934 / 4441 = 0.89

d. Beverage$'m Cheese'million

Average Assets 2641 4441

Targeted return 8% 8%

Target income 211 355

Residual Income Beverage'm Cheese'm

Operating income 358 643

Less: Target income 211 355

Residual Income 147 288

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Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a c

Nookie1986 [14]

Answer:

The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.

Explanation:

We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

And from there we can calculate the Yield to Maturity just by multiplying the semi-annual one by 2.

Identifying the given information.

We have a period of 30 years, so for the semiannual bond we have $n=2(30) = 60$ periods.

The face value, FV, is $1000, the coupon rate is 0.10, thus we can use them to find the interest per period PMT.

$PMT=0.10 \times \cfrac{1000}{2}\\PMT=\$ 50$

The current price of the bond, PV is $1050.

Replacing the values on the semiannual Yield to Maturity

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

$YTM_{sm}=\cfrac{50+\cfrac{1000-1050}{60}}{\cfrac{1000+1050}{2}}$

Simplifying we get

$YTM_{sm}=4.797\%\\$

Finding the Yield to Maturity.

We can just multiply by 2 to get the Yield to Maturity from our previous result and rounding it to 2 decimals we get

$YTM = 2 YTM_{sm}\\YTM=9.59\%$

Alternatively we can use Excel and write:

RATE(n, PMT, PV, FV)*2

That is

RATE(60,50,1050,1000)*2

And we will get the exact Yield to maturity 9.49%

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3 years ago

In the case of existing customers, ________ gives the information on the date and type of contact,

TEA [102]

Answer:

performance data

Explanation:

It seems that the question is structured a little off, but based on the information that is provided the answer that would go in the blank area would be performance data. As mentioned in the question performance data provides all the information regarding a single transaction, including the date and type of contact that inquired about the product in question. Which is what is being described in the question as well as answers a) and b) which i believe is part of the initial question and not answer choices.

4 0

3 years ago

_____ are dedicated to promoting human behaviors and industry decisions that are environmentally responsible.

ElenaW [278]

Green careers ...................

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3 years ago

Read 2 more answers

When an electrical circuit is capable of conducting current.

mario62 [17]

Answer: When the switch is closed.

Explanation: The current is the flow of charges, the current can only flow when the switch is closed

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3 years ago

A U.S. firm holds an asset in Great Britain and faces the following scenario:

Lady_Fox [76]

Answer:

C) Sell Â£2,278.13 forward at the 1-year forward rate, F1($/Â£), that prevails at time zero.

Explanation:

given data

State 1 State 2 State 3

Probability 25% 50% 25%

Spot rate $ 2.50 /Â£ $ 2.00 /Â£ $ 1.60 /Â£

P* Â£ 1,800 Â£ 2,250 Â£ 2,812.50

P $4,500 $4,500 $4,500

solution

company holds portfolio in pound. so to get hedge, they will sell that of the same amount.

we get here average value of the portfolio that is

The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)

The average value of the portfolio = 2278.13

so correct option is C) Sell Â£2,278.13 forward at the 1-year forward rate, F1($/Â£), that prevails at time zero.

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4 years ago