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MaRussiya [10]
3 years ago
7

Your venture has net income of $600,000 taxable income of $1,000,000 operating profit of $1,200,000 total financial capital incl

uding both debt and equity of $9,000,000 a tax rate of 40%, and a WACC of 10%. What is your venture’s EVA?
Business
1 answer:
Butoxors [25]3 years ago
3 0

Answer:

EVA = -$180,000

Explanation:

given data

net income = $600,000

taxable income of $1,000,000

operating profit = $1,200,000

total financial capital = $9,000,000

tax rate = 40%

WACC = 10%

solution

we get here EVA that is express as

EVA = NOPAT - Invested Capital × WACC   ..................1

and here

NOPAT = EBIT × ( 1 - Tax Rate )  .........2

put here value

NOPAT = operating profit × (1 - Tax Rate)  

NOPAT =$1,200,000 × (1 - 0.40)  

NOPAT =$720,000

so put in equation 1 we get

EVA = NOPAT - Invested Capital × WACC

EVA = $720,000 - $9,000,000 × 10%

EVA = -$180,000

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yes, it would matter, because you want to get the best out of it

Explanation:

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3 years ago
When production is characterized by opportunity costs, the resulting production possibilities frontier will be a straight line.
MatroZZZ [7]

People often produce goods. When production is characterized by opportunity costs, the resulting production possibilities frontier will be a straight line is a true statement.

<h3>What is opportunity cost in terms of production?</h3>

The opportunity cost of transporting or changing from one efficient combination of production to another that is better is simply defined as how much a specific good that is one goods is given up so that a person can get more of another kind of goods.

Opportunity cost is said to be seen when spending more money on an item.

Due to the above, when production is seen to be more of constant opportunity cost, the resulting production possibilities frontier is known to occur on a straight line.

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brainly.com/question/1501489

7 0
2 years ago
A(n) _____ is a carefully crafted document that reflects the performance specifications of the project deliverables.
patriot [66]

A(n) _____ is a carefully crafted document that reflects the performance specifications of the project deliverables  .A project scope.

What is the project scope?

Project scope is the part of project planning that involves determining and documenting a list of specific project goals, deliverables, tasks, costs and deadlines. The documentation of a project's scope is called a scope statement or terms of reference.

Project scope importance:

Project scope is a part of the project planning process that documents specific goals, deliverables, features, and budgets. The scope document details the list of activities for the successful completion of the project. The scope is defined by understanding the project requirements and the client's expectations.

.What should a project scope include?

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3 0
2 years ago
Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% therea
AleksAgata [21]

Answer:

The value of the stock = $19.64

Explanation:

According to the dividend valuation model, <em>the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.</em>

Year                     Workings                        Present value(PV)

1                 $1 × (1.22)  × 1.11^(-1)  =                     1.10

2                 $1 × (1.22)^2 ×(1.11)^(-2) =                1.21

3                 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)

PV (in year 0) of Year 3 dividend  = 21.35 × 1.11^(-2)

                                      = 17.33 (see notes)

<em>The value of the stock</em> = $1.10+ $1.21 + 17.3

                                      = $19.64

Notes:

<em>Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.</em>

<em />

The value of the stock = $19.64

                                     

8 0
3 years ago
When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living. True
MariettaO [177]

Answer:

True

Explanation:

Consumer price index measures the changes in price level of a basket of goods.

If consumer price index falls if means price level has fallen , goods become cheaper and the same amount of money can buy more quantities of goods and services.

Conversely if consumer price index rises, price level has increased, goods and services become more expensive and more amount of money would be needed to maintain the same level of consumption.

CPI is calculated as cost of basket of goods in a given year / cost of basket of goods in a base year

I hope my answer helps you

7 0
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