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xxMikexx [17]
3 years ago
8

If Zephyr Electronics obtains an 18 percent return on invested capital, which of the following willhelp determine if it has a co

mpetitive advantage over other pharmaceutical companies?a. comparing the return to the return on invested capital obtained by other firms in theindustryb. assessing the value based on the shareholders' expectations of return on their capitalc. evaluating the liquidity ratios for other pharmaceutical companiesd. comparing the value to the history of the firm's return of investment over a number of years
Business
1 answer:
nika2105 [10]3 years ago
7 0

Answer:

A) comparing the return to the return on invested capital obtained by other firms in the industry.

Explanation:

A firm that has developed a competitive advantage over its competitors will to able to either produce the same amount of output using fewer resources, or produce higher output using the same resources than its competitors. A competitive advantage means being more efficient.

So if we want to determine if Zephyr Electronics 18% return on invested capital (ROIC) provides them a competitive advantage over its competitors, we have to compare Zephyr's ROIC with the ROIC of the rest of the major firms in the industry.

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Why can a price discriminating monopolist be both more profitable and more efficient (i.e., produce greater net benefits for soc
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The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
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Please see attached file .

Download docx
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3 years ago
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you're receiving too small of a gain

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Use the information for Geiberger Corporation from BE21.12, except assume the collectibility of the rentals is not probable. Pre
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Answer:

Date                Account title                                      Debit                Credit

12/31/2019      Lease Receivable                           $175,934

                      Cost of Goods sold                         $120,000

                      Sales Revenue                                                        $175,934

                      Inventory                                                                  $120,000

Date                Account title                                      Debit                Credit

12/31/2019      Cash                                                 $40,800

                       Deposit Liability                                                        $40,800

The rental amount is constant and is made on the first day of the lease period so this is an annuity due.

As the collectability is probable, you need to find the present value of this lease:

= 40,800 * Present value of annuity due factor, 5 year, 8%

= 40,800 * 4.3121

= $175,933.68

= $175,934

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3 years ago
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