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drek231 [11]
3 years ago
9

The Campus Division of All-States Bank has assets of $1,800 million. During the past year, the division had profits of $225 mill

ion. All-States Bank has a cost of capital of 4 percent. Ignore taxes.
Required:
(a) Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1)
(b) Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.)
Business
1 answer:
Nookie1986 [14]3 years ago
6 0

Answer: (a) 12.5%;

(b) $153 million

Explanation:

Given that,

Campus Division of All-States Bank,

Assets = $1,800 million

Division profits = $225 million

Cost of capital = 4 percent

(a) Divisional ROI = \frac{Profit}{Assets}

                             = \frac{225}{1,800}\times100

                             = 12.5%

(b) Divisional RI = Profits - Assets × cost of capital

                          =  $225 million - $1,800 million × 0.04(4%)

                          = $225 million - $72 million

                          = $153 million

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The contract for debentures are not governed by UCC.

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2 years ago
Which of the following is a characteristic of a management control​ system? A. It deals with coordinating planning across the or
Katen [24]

Answer:

D. Helps managers to act rapidly and with autonomy

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The management control system defines that every policy and procedure should be followed in a proper manner and work on new strategies for the benefit of the organization. It helps in managing the hierarchy level and differentiates the performance company resources like finance, marketing, sales, Human resource management, operations, etc.  

Therefore the management control system provides to work with sovereignty so that the work runs in a smooth and inefficient and effective manner. It also helps the managers to take the action quickly before things go out of control.

3 0
3 years ago
Suppose the United States has two​ utilities, Commonweath Utilities and Consolidated Electric. Both produce 20 million tons of s
jok3333 [9.3K]

Answer:

The incomplete part of the question is "Using a cap-and-trade system of tradable emission allowances will eliminate half of the sulfur dioxide pollution at a cost of $1 million per year. If the permits are not tradable, what will be the cost of eliminating half of the pollution? If permits cannot be traded, then the cost of the pollution reduction will be $1 million per year." The full question is attched as picture as well

1) Tradable permit system

Then lower MAC firm will abate the all pollution units

Then as MAC1 = $250, MAC2 = $275

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Then 1 will sell all permits to 2, at a price between $250 & $275.

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7 0
3 years ago
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Answer:

1a. 7.12%

b. 6.99%

2. 9.69%

Explanation:

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

The IRR for project X :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $6,660

Cash flow in year 2 = $7240

Cash flow in year 3= $4760

IRR = 7.12%

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Cash flow in year 2 = $7,780

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IRR = 6.99%

The cross over rate is the rate that equates the cash flow from both projects.

The first step is to subtract the cash flow from project Y from the cash flow of project X

Cash flow for year 0 = $16400 - $16400 = 0

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The next step is to find the discount rate using a financial calculator.

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Cash flow for year 3 =$1230

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I hope my answer helps you

6 0
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Answer: <em>Cost of Goods Manufactured = $ 660,000</em>

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7 0
3 years ago
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