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katovenus [111]
3 years ago
9

Because Toyota's investment eventually increases the level of R&D spending for his given level of sales revenue what would t

he effect on Toyota's return on invested capital (ROIC)?
Business
1 answer:
dsp733 years ago
6 0

Available Options Are:

a. Increasing ROIC by increasing return on sales

b. Decreasing ROIC by increasing return on sales

c. Decreasing ROIC by decreasing return on sales

d. Increasing ROIC by decreasing return on sales

Answer:

Option C. Decreasing ROIC by decreasing return on sales

Explanation:

The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:

ROCI  =  Operating Income (1 - Tax Rate) / Book Value of Invested Capital

As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numerator would be decreased and as a result the ROIC would decrease.

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Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co
Karolina [17]

Answer:

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Explanation:

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3 years ago
A(n) _____ is a strategy that guarantees a solution to a problem. subgoal
salantis [7]

Answer:

Algorithm

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5 0
3 years ago
BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries.
OleMash [197]

Answer: False

Explanation:

The statement that "BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries" is wrong.

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3 years ago
During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferr
Margaret [11]

Answer:

1. (4) Building at $180,000 and accumulated depreciation of $18,000.

2. (1) $312,000

3. (3) additional paid-in capital of $162,000.

Explanation:

1. The purchase price of building is $180,000

And the depreciation based on straight line method with a life of 30 years for each year = $180,000/30 = $6,000

Therefore, accumulated depreciation for 3 years = $6,000 \times 3 = $18,000

2. Total amount of assets given to subsidiary shall be the cost, and value of investment in books = $100,000 of land + ($180,000 - $18,000) of building after depreciation + $50,000 cash given

Therefore total value of investment shall be $312,000

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= $162,000

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