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forsale [732]
4 years ago
9

Alpha Division had the following information: Average operating asset base in Alpha Division $500,000 Operating income in Alpha

Division $60,000 Cost of capital 14% Target return on investment (ROI) 16% Margin for Alpha Division 21% If the asset base is decreased by $120,000, with no other changes, what will Alpha Division's return on investment be
Business
1 answer:
Eddi Din [679]4 years ago
4 0

Answer:

15.79%

Explanation:

Current Average operating asset = $500,000

Decrease in asset base will make average operating asset $380,000 [500000 - 120000]

ROI = Operating Income / New operating asset base

=$60,000 / $380,000

= 15.78947...% = 15.79%

Hence, the correct answer is 15.79%

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Logano Driving School’s 2017 balance sheet showed net fixed assets of $4.6 million, and the 2018 balance sheet showed net fixed
r-ruslan [8.4K]

Answer:

$270,000

Explanation:

Net capital spending = Increase in net fixed assets + Depreciation expenses

= [ Net fixed assets at year end - Net fixed assets at the beginning ] + Depreciation expenses

= [$5,200,000 - $4,600,000] + $330,000

= $600,000 - $330,000

= $270,000

8 0
4 years ago
The basic competencies of selling that are required of top professional salespeople include selling skills and _________.a. Acco
fomenos

Answer:

The correct answer is (d)

Explanation:

Interpersonal communication skills are considered vital for marketing professionals, and companies usually arrange workshops and seminars to improve the interpersonal skills of their marketing employees. Apart from selling skills, interpersonal skills are vital to become a top professional salesman. The face to face communication is all about interpersonal skills which include verbal and non-verbal actions that help to attract more customers.

7 0
3 years ago
You sold a put contract on EDF stock at an option price of $.50 and an exercise price of $21. Today, EDF stock is selling for $2
andreyandreev [35.5K]

Answer:

-$50

Explanation:

Calculation to determine your total profit on this investment

Total profit = 1 × 100 × ($.50 - $21+ $20)

Total profit = 100×(-$0.5)

Total profit = -$50

Therefore your total profit on this investment is -$50

7 0
3 years ago
Equipment originally costing $100,000 has accumulated depreciation of $65,000. if it is sold for $40,000, the company should rec
son4ous [18]
Hi there
What we need first is the book value of the equipment
The book value is
originally costing - accumulated depreciation
100,000−65,000=35,000

Since the sale price is 40000 and the book value is 35000 This result a gain of 5000 (40000-35000)

Good luck!

4 0
3 years ago
Trade-offs between the characteristics that make information useful may be necessary or beneficial. Issuance of interim financia
SashulF [63]

Answer:

A- relevance and reliability

8 0
3 years ago
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