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ICE Princess25 [194]
3 years ago
14

Consider this case: Last year, Jackson Tires reported net sales of $80 million and total operating costs (including depreciation

) of $52 million. Jackson Tires has $115 million of investor-supplied capital, which has an after-tax cost of 7.5%. If Jackson Tire's tax rate is 40%, how much value did it's management create or lose for the firm during the year?
A) 39.38 million

B) 2.66 million

C) 60.38 million

D) 8.18 million
Business
1 answer:
san4es73 [151]3 years ago
6 0

Answer:

D) 8.18 million

Explanation:

EBIT=80-52

=$28 million

EVA=net operating profit after tax-(capital invested×WACC)

=$28 m (1-0.4)-($115 m ×.075)

=$8.18 million

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When reviewing the balance sheet for Portable Pet Care, Inc., a mobile small animal care business, Ricky noted the following inf
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Answer:

The net worth (owners' equity) for this business is $2.2 million

Explanation:

Net worth: It is also known as owner's equity which is a difference between total assets and total assets.

In this question, we use the accounting equation which is used to balance the debit and credit side of the balance sheet items.

So, the accounting equation is

Total Assets = Total Liabilities + Owner's Equity

where,

Company assets are $3.5 million

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Now, apply the above equation to find out the value of the owner's equity

So, owner equity would be equals to

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3 0
4 years ago
The best way to select a career is to research which one makes the most money. Please select the best answer from the choices pr
IgorC [24]

Answer:

FALSE

Explanation:

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Create a list of skills that you have, and then pick the strongest skills from that list. Consult your friends or family for an outer perspective. If you play by your strengths, you’ll enjoy a great professional life.

<u><em>Discover Your Personality Type </em></u>

You might have heard about Myers-Briggs. It’s an introspective self-report questionnaire which helps you find out what type of personality you have. Different persons have different types of personalities; someone could be an introvert and someone else could be an extrovert. By knowing your personality type, you’ll be able to find out what type of work environment will suit you best.

<u><em>Take a Career Test </em></u>

If you are confused deciding which career is right for you, you can also go for a career test. Typically, a career test presents you with a set of questions which you need to answer in the given time-frame. A career test is aimed at assessing your skills and strengths and then suggest a career that is a good match. Once you have finished answering all the questions, you’ll be provided with 2-3 career options that suit you best and promise a satisfying life.

On the internet, you’ll find a number of career tests that you can complete within a few minutes. Many of them are free.

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No matter where you live, you’ll always have people who are already employed, expert in a particular field or have more professional experience. Feel free to get in touch with these people and talk about your aspirations. Gather information about different occupations and industries. Ask them for advice that you can use for choosing a career that’s best for you.

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5 0
4 years ago
Read 2 more answers
State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual
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Answer:

a. An individual sells her house on her own.  

         GDP is not affected.

b. An individual sells his house through a broker.

         GDP is not affected.  

c. Government increases Social Security payments.  

          GDP is not affected.

d. Stock prices rise by 20 percent.

   GDP will increase.

Explanation:

Selling a house by an individual does not affect the Gross Domestic Product of a Country.  

Selling a house by a broker will also not affect the Gross Domestic Product of a Country.

When a Government increases the social security payments, this result in transfer of money from government to social security account but it does not generate any goods are services in the country.

When the stock prices increases in the country, there is more likely that the individuals will invest in the stocks. So investments will increase and thus GDP will rise.  

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3 years ago
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Liono4ka [1.6K]

I agree with you on that

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If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what w
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Answer:

Explanation:

If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,

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Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.

5 0
4 years ago
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