Answer:
a-1. Calculate the ROI for both North and South divisions.
- ROI North Division = net profit / cost of investment = $6,000,000 / $30,000,000 = 20%
- ROI South Division = net profit / cost of investment = $30,000,000 / $320,000,000 = 9.38%
a-2. If Solomons measures performance using ROI, which division had the better performance?
- North Division, since its ROI is much higher
b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.)
- North Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $30,000,000 x (20% - 8%) = $3,600,000
- South Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $320,000,000 x (9.38% - 8%) = $4,416,000
b-2. If Solomons measures performance using economic value added, which division had the better performance?
- It should choose South Division because its EVA is higher.
c. Would your evaluation change if the company’s cost of capital was 16 percent?
1. When evaluated by ROI?
- No it would not change because ROI doesn't consider cost of capital.
2. When evaluated by EVA?
- Yes it would change because South Division's EVA would be negative, while North Division's will decrease but remain positive.
North Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $30,000,000 x (20% - 16%) = $1,200,000
South Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $320,000,000 x (9.38% - 16%) = -21,184,000
Answer:
Money markets
Explanation:
The money market is a formal exchange market that brings together lenders and borrowers of short-term debt securities. The money market facilitates governments and corporates to sell short-term securities to meet their cash flow shortages.
Money markets enable institutional and retail investors with excess cash flow to invest in quality short-term investments. The money markets provide investors with options for investments and diversification.
First of all Life Insurance. So if something happens to you then you’re family won’t suffer. The of course Accident Insurance and Automobile Insurance. The basics like that
Answer:
Explanation:
Commutative laws: p ∧ q ≡ q ∧ p
p ∨ q ≡ q ∨ p
Associative laws: (p ∧ q) ∧ r ≡ p ∧ (q ∧ r)
(p ∨ q) ∨ r ≡ p ∨ (q ∨ r)
Distributive laws: p ∧ (q ∨ r) ≡ (p ∧ q) ∨ (p ∧ r)
p ∨ (q ∧ r) ≡ (p ∨ q) ∧ (p ∨ r)
Identity laws: p ∧ t ≡ p
p ∨ c ≡ p
Negation laws: p ∨ ∼p ≡ t
p ∧ ∼p ≡ c
Double negative law: ∼(∼p) ≡ p
Idempotent laws: p ∧ p ≡ p
p ∨ p ≡ p
Universal bound laws: p ∨ t ≡ t
p ∧ c ≡ c
De Morgan’s laws: ∼(p ∧ q) ≡ ∼p ∨ ∼q
∼(p ∨ q) ≡ ∼p ∧ ∼q
Absorption laws: p ∨ (p ∧ q) ≡ p
p ∧ (p ∨ q) ≡ p
Negations of t and c: ∼t ≡ c
∼c ≡ t
Taxable income is difficult to determine for organizations that have multiple ventures in CSR and quasi CSR and possible money launder schemes.
Explanation:
The total income and in effect taxes that are payable are regulated n the basis of many rules that stem from tax exemption laws which can be complicated and hazy and are used for the benefit of the firm to exploit grey areas in the law and fighting for it in the court if needs be.
Even without drastic measures it is hard because of the branching out of a company's ventures, dealings in money laundering and CSR activities that turn over profit for the company