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vfiekz [6]
3 years ago
12

Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divis

ions invest heavily in R&D, which is assumed to benefit five years. R&D spending is made uniformly throughout the year. UEI has a cost of capital of 11 percent. Selected financial information for the two divisions (in thousands of dollars) for the year just completed follows. Consumer Commercial Sales revenue $ 54,000 $ 85,000 Divisional income 11,500 11,925 Divisional investment 35,500 39,750 Current liabilities 4,200 4,000 R&D 4,200 4,200 Required: Evaluate the performance of the two divisions assuming UEI uses economic value added (EVA)
Business
1 answer:
zhannawk [14.2K]3 years ago
4 0

Answer:

Consumer    EVA 7, 133.00

Commercial EVA 7,090.50

<u>Both are profitable</u>

<u />

Explanation:

The EVA (economic value added) is the result from subtracting the cost of capital of the investment to their divisional income. This will determinate if the division increase the company's capital or destroyed (as it return less than optimal/desired)

Consumer Income                     11,500

Investment: 35,500 + 4,200 = 39,700

EVA:     11,500 - 39,700 x 11% =  7,  133

Commercial Income                  11,925

Investment: 39,750 + 4,200 = 43,950

EVA: 11,925 - 43,950 x 11%   =  7090.5

Both division are profitable as they generate more income than the cost of the investment

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Within the domain of logistics management, the customer service concept implies that firms should:
kodGreya [7K]
I had to look for the options and here is my answer:

Within the domain of logistics management, the customer service concept suggests that the firms should simultaneously establish customer service levels and logistic costs in order to achieve the given strategic goals. (The answer is based on the actual options given).
6 0
3 years ago
A rapidly growing company just paid a dividend of $1.50 a share. For the next three years, the earnings growth rate is projected
Lelu [443]

Answer:

$41.66

Explanation:

Let us assume the dividend in year n be denoted by Dn and the Stock price by Pn

Given that,

D0 = $1.50

Now

Growth rate for next 3 years

g1 = 15%

D1 = D0 × (1 + g1)

    = 1.50 × (1 + 0.15)

   = 1.725

D2 = D1 × (1 + g1)

= 1.725 × (1 + 0.15)

= 1.984

D3 = D2 × (1 + g1)

= 1.984 × (1 + 0.15)

= 2.282

Subsequent Growth rate = g2 = 4%

Now  

D4 = D3 × (1 + g2)

     = 2.282 × (1 + 0.04)

     = 2.373

So, According to Gordon's Growth Rate,

P3 = D4 ÷(r - g2)

P3 = 2.373 ÷ (0.09 - 0.04)

    = $47.46

Now  

Value of Stock now  is

= P0

= D1 ÷ (1 + r) + D2 ÷ (1 + r)^2 + D3 ÷ (1 + r)^3 + P3 ÷ (1 + r )^3

= 1.725 ÷ (1 + 0.09) + 1.984 ÷ (1 + 0.09)^2 + 2.282 ÷ (1 + 0.09)^3 + 47.46 ÷ (1 + 0.09)^3

= $41.66

4 0
3 years ago
Company ABC reported the following: 1. Net Income: $110,000 2. Return on Sales (Net Income/Sales): 3.56% 3. Gross Profit Percent
Sergeeva-Olga [200]

Answer:

$2,266,123.60

Explanation:

As it is given

Return on sales = Net income ÷ Sales

3.56% = $110,000 ÷ Sales

So, the sales is  $3,089,887.64

Now the Gross Profit percentage is

Gross Profit percentage = Gross profit ÷ Sales

26.66% = Gross profit ÷ $3,089,887.64

So, the gross profit

= $823,764.044

Now the cost of goods sold is

= Sales - gross profit

=  $3,089,887.64 - $823,764.044

= $2,266,123.60

8 0
3 years ago
systems play a key role in helping organizations achieve goals, which are set forth in a(n) statement. Computers can be used by
Sergio [31]

Answer:

The following are those which helps in playing a key role in helping organizations to achieve their goals:

O. Computers can be used by people at all levels of an organization.

O. Workers use information systems to produce and manipulate information.

O. Managers depend on information systems to supply data that is essential for long-term planning and short-term tactical planning.

O. A decision system helps workers and managers make non-routine decisions by constructing decision models that include data collected from internal and external sources.

O.  A(n) engine evaluates the facts and rules to produce answers to questions posed to the system.

O. Using a technique called logic, these systems can deal with imprecise data and problems that have more than one solution.

Explanation:

8 0
3 years ago
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Ratling [72]

Answer:

Change "achieved phenomenal success" to "improved customer satisfaction."

Explanation:

This is because it has to do with customers services and from an end customer’s point of view to evaluate current perspectives, emerging needs and preferences, and it's impact on business outcomes.

8 0
3 years ago
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