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Assoli18 [71]
2 years ago
8

Casey Motors recently reported the following information:

Business
1 answer:
alexira [117]2 years ago
6 0

Company's Economic value added amount is (-$275,000)

Let understand that Economic Value Added is basically, an estimate of the company's economic profit

  • The formulae for deriving Economic Value Added = NOPAT - {Cost of Capital * Capital employed}

Let understand that NOPAT means Net operating profit after tax. NOPAT = EBIT (1 - Tax)

Suppose EBIT = x

EBIT - Interest - Tax = Net Income

(x - 200,000) -  0.25*(x - 200000) = 475,000

x - 200,000 = 475,000/0.75

x = 833333.33

Now, EBIT = $833,333.33

Then we calculate <em>NOPAT </em><em>= </em><em>EBIT (1 - Tax)</em>

NOPAT = 833,333.33 * (1 - 0.25)

NOPAT = $625,000

Then, we calculate Economic Value Added

EVA = $625,000 - 0.10*$9,00,0000

EVA = $625,000 - $900,000

EVA = ($275,000)

In conclusion, the amount of the Company's Economic value added is a negative of $275,000.

See similar question & solution here

<em>brainly.com/question/24196860</em>

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D. Time-management.

Explanation:

Time management is the process of planning and exercising conscious control of time spent on specific activities, especially to increase effectiveness, efficiency, and productivity.

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3 years ago
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has
alexandr1967 [171]

Answer:

Results are below.

Explanation:

<u>To calculate the price of each bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

<u>Bond X:</u>

Coupon= (0.11/2)*1,000= $55

YTM= 0.09/2= 0.045

Years to maturiy= 11 years

Bond Price​= 55*{[1 - (1.045^-11)] / 0.045} + [1,000/(1.045^11)]

Bond Price​= 469.1 + 616.2

Bond Price​= $1,085.3

<u>Bond Y:</u>

Coupon= (0.09/2)*1,000= $45

YTM= 0.11/2= 0.055

Years to maturiy= 11 years

Bond Price​= 45*{[1 - (1.055^-11)] / 0.055} + [1,000/(1.045^11)]5

Bond Price​= 364.16 + 554.91

Bond price= $919.07

3 0
3 years ago
if, after one year, the yield to maturity on a multiyear coupon bond that was issued at par is lower than the coupon rate, what
maw [93]

When the YTM is lower than the bond's coupon rate, the bond's market value exceeds its par value (premium bond). Bonds are selling at a discount if their coupon rate is smaller than their YTM. A bond is trading at par if its coupon rate is equal to its yield to maturity (YTM).

<h3>What is the cost of a $1,000 par value, three year, zero-coupon bond?</h3>

(a) A three-year zero-coupon bond with a face value of $1,000 would have a present value (or price) of 874.69 with a yield of 4.564 percent.

<h3>What is the yield to maturity on a discount bond with a $1000 face value that will mature in a year and sell for $800?</h3>

The yield to maturity is determined using the following formula with the current price of $800: 800 = 1000 / (yield to maturity plus one) Yield to maturity Equals 1 plus yield.  Yield until maturity equals 25%

To Know more about coupon rate

brainly.com/question/16913107

#SPJ4

5 0
1 year ago
A retail store's Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales. If the sale
ella [17]

Answer:

$10,619.05

Explanation:

When sales is made at a tax rate of 5%, the entries to be posted in the proportion of the transaction amount

Dr Cash/ Accounts receivable 105%

Cr Sales revenue 100%

Cr Sales tax 5%

As such, if Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales, it means that the accounts contains 105%, as such, the sales tax which is the amount owed the taxing agency

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3 0
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Answer: Manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

Explanation:

In a push strategy the manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

In a push strategy, the firm takes it's products to the consumer. The aim of this is for the product to gain much exposure than it already has and attract more sales. Other sales channels are bypassed in the scenario, leaving just the producer and the customer. Advertisment is one of the greatest promotional tool for push strategy.

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