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Radda [10]
3 years ago
9

Question 3: Economic value-added (EVA) Net operating profit before taxes is $1,800. Total assets (invested capital) are $8,500,

and current liabilities are $1,100. The weighted average cost of capital (WACC) is 11%. The tax rate is 20%. Compute the economic value added (EVA). NOPAT = $ Incorrect: Your answer is incorrect. EVA = $ Incorrect: Your answer is incorrect. (if you get a negative number, enter it with a minus sign, i.e., -100 not ($100))
Business
1 answer:
posledela3 years ago
7 0

Answer:

- $454

Explanation:

Net Operating Profit after tax = Net operating profit before tax - tax rate

                                                  = $1,800 - 20%

                                                  = $360

Economic Value Added:

= Net Operating Profit after tax - (Capital Invested × Weighted average cost of capital )

= $360 - [($8,500 - $1,100) × 11%]

= $360 - ($7,400 × 11%)

= $360 - $814

= - $454

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Define liquidity. Rank the following assets in terms of liquidity, from most to least liquid: money market mutual fund, savings
valina [46]

Answer:

Liquidity: amount of cash or cash equivalents and its primary feature of converting quickly into money without losing any of it current value.

1)_ Dollar bill

2)_ Saving account

3)_ Checking account

4)_ Gold bar

5)_ Corporate stock

6)_ Money market mutual fund

7)_ House

Explanation:

To begin with, the liquidity is the feature of those assets to converting the most quickly as possible in cash and therefore the the most liquid asset is properly the dollar bill and the less liquid asset is the house due to the fact that it could take years to sell by a proper offer and becoming actual cash. In conclusion, it works that way with all the other assets, the liquidity of each one is higher or lower depending on the quickness of converting into cash.

3 0
3 years ago
On December 1, 2020, Swifty Corporation purchased a tract of land as a factory site for $770000. The old building on the propert
seropon [69]

Answer:

the amount reported as land is $858,400

Explanation:

The computation of the amount reported as land is shown below;

= Purchase cost + raze old building cost + ownership cost + title guarantee cost - Proceeds from sale of salvaged materials

= $770,000 + $69,000 + $9,900 + $16,400 - $6,900

= $858,400

hence, the amount reported as land is $858,400

The same would be considered

6 0
2 years ago
A person who is involved in the process of creating and managing a business to achieve his or her desired objectives is engaged
Sonja [21]

Answer:

entrepreneur

Explanation:

An entrepreneur is an individual who initiates the process of creating and managing a business entity with profit motives. They start with developing a business idea and transform it into a successful venture. Entrepreneurs assume the risks associated with starting a new business. They risk their capital, time, and energy with the expectation to make profits.

Entrepreneurs are creative and innovative people. They spot business opportunities where others don't.  Entrepreneurs develop products and services that address the community's needs.

5 0
2 years ago
A decrease in the price of domestically produced industrial robots will be reflected in a. the GDP deflator but not in the consu
JulsSmile [24]

Answer:

A decrease in the price of domestically produced industrial robots will be reflected in the GDP deflator but not in the consumer price index.

<u>Explanation:</u>

Although from the outset, CPI and GDP Deflator might measure something very similar, there are a couple of key contrasts. The first is that GDP Deflator incorporates just local merchandise and nothing that is imported. This is diverse because the CPI includes anything purchased by buyers, including remote merchandise.

The subsequent contrast is that the GDP Deflator is a proportion of the costs all things considered and benefits while the CPI is a proportion of just merchandise purchased by shoppers.

6 0
3 years ago
Who is your favorite character in the walking dead? mine is rick
fomenos

Answer:

do you watch riverdale?

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Explanation:

3 0
3 years ago
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