Answer: 2.36 years
Explanation:
Payback period is the amount of time it will take to pay off the initial investment/ outlay which in this case is $15,700.
= Year before investment is paid + (Amount remaining/ Cashflow in year of Payback)
Add up the cashflows to find the year before payback;
= 6,400 + 7,700
= $14,100
Year before payback = 2
Amount remaining;
= 15,700 - 14,100
= $1,600
Payback period = 2 + (1,600/ 4,500)
= 2.36 years
Answer:
0.1125 or 11.25% for each firm
Explanation:
Given that,
Each has $10 million in invested capital,
$1.5 million of EBIT
25% federal-plus-state tax bracket
ROIC for LL:
= [EBIT × (1 - tax rate)] ÷ invested capital
= [1.5 × (1 - 25%)] ÷ 10
= 0.1125 or 11.25%
ROIC for HL
= [EBIT × (1 - tax rate)] ÷ invested capital
= [1.5 × (1 - 25%)] ÷ 10
= 0.1125 or 11.25%
Therefore, the return on invested capital (ROIC) for each firm is 11.25%
Answer:
decreases as the investor increases the number of stocks in her portfolio.
Explanation:
In Business, a portfolio can be defined as a wide range of financial investments such as bonds, stocks, cash, commodity, real estate, cash equivalent, art etc that are being held by an individual or organization.
The risk associated with a portfolio decreases as the investor increases the number of stocks in her portfolio.
This ultimately implies that, as the number of assets being held by an individual or organization increases, the risk associated with such a portfolio decreases. Generally, this is referred to as diversification.
Answer:
An offer to be featured in an upcoming edition of Taste of Home magazine would be considered as part of the promotion element of the marketing mix.
Explanation:
Featuring the offer in an magazine is a way to promote the business and spread the word. The promotional element of the marketing mix includes promotional methods, message strategies, media strategies, and message frequency. This is one of the most important contributors to sales and traffic generation.
Answer:
ROI is an very good indicator of a company's overall performance. ROI is calculated as
ROI = Profit After Tax / (Average Total Assets) x 100
It gives us an accurate measure of profitability from a given level of investment. It tells us that how much return we are getting on the investment and allows us to think about our investment strategy.
Manufacturing sector like pharma, fmcg products, automobiles, etc. use ROI as a strategic indicator as the numbers are clearly defined. While in the services sector, it is difficult to use ROI simply because it is difficult to track how much of profit has resulted from the training provided. Still one can calculate ROI if one can relate how much of profit has come from the training/ services provided. In IT services sector ROI is being used.
Explanation:
