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scoray [572]
4 years ago
5

Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last

year's results: Adams Division Jefferson Division Net (after-tax) income $ 605,000 $ 315,000 Total capital employed 4,000,000 3,250,000 Washington's actual cost of capital was 12%.
Required: 1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 605,000 315,000 4,000,000 3,250,000 2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign.
Business
1 answer:
Gwar [14]4 years ago
4 0

Answer:

$125,000 and -$75,000

Explanation:

The computation of the economic value added is shown below:

As we know that

Economic Value Added is

= Net (after-tax) income - (Capital employed × Actual cost of capital)

For Adams Division, it is

= $605,000 - ($4,000,000 × 12%)

= $605,000 - $480,000

= $125,000

And for Jefferson Division, it is

= $315,000 - ($3,250,000 × 12%)

= $315,000 - $390,000

= -$75,000

We simply applied the above formulas

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This is further explained below.

<h3>What is one initiative that could be planned and implemented to achieve this goal?</h3>

Generally, A company's long-term objective is to dominate both its industry's price point and level of service.

Among the many strategies that may be developed and put into action to accomplish this would be to "provide your most valuable customers individualized service tailored to their specific requirements."

In conclusion,  Strategic goals are the particular financial and non-financial objectives and achievements that a firm seeks to accomplish over the course of a specified period of time, often the next three to five years.

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4 0
2 years ago
Smith &amp; Smith has a bond rating of B and an Altman s Z-score of 1.0. This suggests that:
Ghella [55]

Answer:

"The firm has high credit risk" is the correct answer.

Explanation:

  • A Z-Score exceeding 2.99 indicates an organization becomes focused mostly on the economic projections throughout the safe space. Throughout the Grey Zone, a Z-Score among 1.8 as well as 2.99 means that there is indeed a reasonable possibility that the business will go bankrupt throughout the next 2 years.
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3 0
3 years ago
Who do i write the check to for speeding ticket?
uysha [10]
The court which you were sentenced to go to. thats where i wrote mine to
4 0
3 years ago
Read 2 more answers
Liabilities are shown on the:__________a. statement of changes in stockholders' equity.b. balance sheet.c. income statement.d. s
Zarrin [17]

Answer:

. balance sheet.

Explanation:

Liabilities are debts a business or an individual owe to other parties. It is money owed to creditors.  Liabilities are financial obligations that an enterprise incur in the course of doing business. The obligations or debts have to been paid; hence they should be appropriately indicated in the financial records.

Liabilities are recorded in the balance sheet statement. A balance sheet indicates the financial status of a company by showing its assets and how they are financed. The balance sheet is prepared by followed the equation of assets equals liabilities plus equity.  It lists the assets on one right side,  while liabilities and equity appear on the left.

5 0
3 years ago
WT Foods stock is selling for $38 a share. The 6-month $40 call on this stock is selling for $2.01 while the 6-month $40 put is
Daniel [21]

Answer:

2.1%

Explanation:

The computation of continuously compounded risk-free rate of return is shown below:-

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or

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For a better explanation, kindly find the spreadsheet as attached.

Hence we have applied the above formula to reach the continuously compounded risk-free rate of return.

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