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3 years ago

8

The ABS company has a capital base of $270 million, an opportunity cost of capital (k) of 19%, a return on assets (ROA) of 9%, a

nd a return on equity (ROE) of 29%. What is the economic value added (EVA) for ABS

1 answer:

tiny-mole [99]3 years ago

7 0

Answer:

0.9

Explanation:

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The ____ act requires banks and financial institutions to alert customers of their policies and practices in disclosing customer

maw [93]

<span>The Gramm-leach-Bliley Act requires banks and financial institutions to alert customers of their policies and practices in disclosing customer information. The act was created in 1999. If the customer did not like the policies and practices of the financial institutions they could opt out. A major concern was how financial institutions used customer's private information and what third parties the institutions sold the info to. This act helped customers avoid this.</span>

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3 years ago

Rylan Corporation received an offer from an exporter for 25,000 units of product at $16 per unit. The acceptance of the offer wi

hammer [34]

Answer: a.$275,000

Explanation:

Let us assume local production sales of 0 for simplicity of analysis.

At 0 there will be no Variable Costs and no fixed costs because they are dependant on the amount of units produced.

If then Rylan Corporation receives 25,000 units at $16 per unit this will change the Variable costs as it will have to incorporate the new units.

The question however says that normal production continues. This means that Fixed costs do not change. That means fixed costs remain at $0.

That means the only change will be the Variable costs of selling 25,000 units.

At a rate of $11 per unit we then have,

= 11 * 25,000

= $275,000

The costs have increased by $275,000 from 0 which means that $275,000 is the Incremental cost.

Note that Fixed and Variable costs of 0 are improbable and we're only used for simpler analysis. Feel free to try the question with other number of units for your own practice. You will arrive at the same answer regardless.

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3 years ago

Teller, a calendar year company, purchased merchandise from TechCom on November 1 of the current year. TechCom accepted Teller's

ikadub [295]

Answer:

Dr Interest Receivable $240

Cr Interest Income $240

Explanation:

The reason is that the Techcom company is lender and must account the lending as a loan.

The loan will be paid with the interest at the end of the period. The interest received at the end of December 31 would be the single month loan at the $4800 at the interest rate which is 10 percent here.

The Interest Income = $4800 * (10% interest rate * 2/12) = $240

The interes would be recorded for the two months which is $240 and accounted for as under:

Dr Interest Receivable $240

Cr Interest Income $240

And at the end of January 31, Teller will make the payment which would be accounted for as under:

Dr Cash $5260

Cr Interest Revenue $120

Cr Notes Receivable $4800

Cr Interest Receivable $240

4 0

3 years ago

As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the result

ASHA 777 [7]

Answer: c. it ensures productive efficiency.

Explanation:

The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.

With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.

This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.

Therefore, the correct option is C "it ensures productive efficiency".

7 0

3 years ago

Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased f

inn [45]

If Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719. During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

First step is to calculate the cash flow to creditor

Cash flow to creditors = $21,700 + $29,571

Cash flow to creditors = $51,271

Second step is to calculate the cash flow to Stockholders

Cash flow to Stockholders =$28,400 - $25,500

Cash flow to Stockholders =$2,900

Now let determine the cash flow from assets using this formula

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Let plug in the formula

Cash flow from assets = $51,271 + $2,900

Cash flow from assets = $48,371

Inconclusion if Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719. During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

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2 years ago