All categories

3 years ago

The following data has been provided for a compan most recent year of operations:

Business

1 answer:

Sidana [21]3 years ago

4 0

Answer:

It is $9,450 (A)

Explanation:

Return on Investment = 40% * $ 45,000

=$18,000

Minimum Required Return = 19% *$ 45,000

= $8,550

Hence, Residual Income = $18,000-$8,550

=$9,450

Minimum required return represents the amount of returns that must be generated on investment to satisfy the expectations of providers of funds.

Residual income is what is left after dividends and interest have been paid to the various investors which can be retained for future investment.

You might be interested in

What is the most important thing that a venture capitalist is looking for in a company to invest in? discuss your response.

Simora [160]

Simply said, management is by far the most crucial aspect for astute investors. VCs invest mostly in the management team's capacity to carry out the company plan. You need a solid understanding of your market, a tested business plan, and a well-thought-out strategy for approaching venture investors if you want to distinguish out from other businesses.

In addition to this, VCs value intellectual honesty and self-awareness in founders. He has discovered from his experience as an investor that "those who are very introspective, recognize their strengths and flaws" have a higher likelihood of founding and eventually developing a successful firm.

To learn more on venture capitalist

brainly.com/question/15079917

#SPJ4

8 0

1 year ago

According to the concept of comparative advantage, a good should be produced in that nation where?

snow_lady [41]

According to the concept of comparative advantage, a good should be produced in that nation where its <u>domestic </u><u>opportunity cost</u><u> is the least.</u>

This is further explained below.

<h3>What does the opportunity cost?</h3>

Generally, Opportunity cost, in microeconomics, refers to the value or advantage foregone by doing one action over another.

To put it another way: if you do one thing, you can't do anything other.

In conclusion, Opportunity cost, in microeconomics, refers to the value or advantage foregone by doing one action over another.

To put it another way: if you do one thing, you can't do anything other.

Read more about opportunity cost

brainly.com/question/13036997

#SPJ1

complete question

According to the concept of comparative advantage, a good should be produced in that nation where:

A) its domestic opportunity cost is greatest.

B) money is used as a medium of exchange.

C) its domestic opportunity cost is least.

D) the terms of trade are maximized.

7 0

2 years ago

The national pork board of the united states wants to create more consumer demand for pork products. the board decides on how to

AleksAgata [21]

Teheheheehhehehehehehheehhehehehehe

5 0

3 years ago

Read 2 more answers

. Alternative A has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alt

JulsSmile [24]

Answer and Explanation:

The computation is shown below:

NPW of X is

= -$20,000 - $9,000 × (P/A,12%,5) + $5,000 × (P/F,12%,5)

= -$20,000 - $9,000 × 3.604776 + $5,000 × 0.567427

= -$49,605.85

And,

NPW of Y is

= -$35,000 - $4,000 × (P/A,12%,5) + $7,000 × (P/F,12%,5)

= -$35,000 - $4,000 × 3.604776 + $7,000 × 0.567427

= -$45,447.11

Based on the above calculations as we can see that net present cost of Y is lower than the net present cost of X so Y should be selected

7 0

3 years ago

Airline F leases all its aircraft under finance leases. Airline O leases all its aircraft under operating leases. Assuming that

Usimov [2.4K]

Answer: e. Airline O has less lease assets at the inception of the lease

Explanation:

With operating leases, the entity leasing the asset or the lessee, does not get the rights to ownership of the asset being leased but instead simply pay a fee or sort of rent for leasing the asset.

With a finance lease however, ownership is passed to the lessee for the lease period and the lessee would have to depreciate the asset and record it in its books.

Airline O will therefore not record any assets but Airline F will. This means that Airline F will have more assets than O because it had to record its assets but O did not.

5 0

3 years ago