Calculate the company''s roi efficiency

Assignment Help Accounting Basics
Reference no: EM13885549

Homestead Farming Company's last year sales were $6,200,000, operating income was $320,000, and the investment was $1,600,000. The cost of capital is 12%.

2.1 Calculate the company's ROI efficiency.

2.2 Calculate the company's ROI productivity.

2.3 Calculate the company's ROI.


Homestead Farming has the opportunity to buy adjoining land for $1,000,000 that will increase sales by 4,000,000 and net income by $130,000. Homestead Farming is a division of Dole Fresh Foods and Homestead's management is evaluated on ROI.

2.4 Would management make the investment?

2.5 Suppose management is evaluated on residual income. Would management make the investment?

2.6 Which decision benefits Dole Fresh Foods?

Reference no: EM13885549

Questions Cloud

Would you accept the job or continue with your own business : You had been offered a full time job with a salary of $80,000 per year. You are currently running your own small business with annual revenue of $150,000 and accountant costs of $60,000. Would you accept the job or continue with your own business? Wh..
Discuss the ethical principles : From the video, discuss the ethical principles influencing both Hundert's and Bell's thinking. Provide specific examples to support your response
What are the marginal revenue product values : A firm that sells headphones at $5 the piece has two plants, one in San Diego (US) and one in Tijuana (Mexico). Both plants make the same product but workers in Tijuana make $32 per day and workers in San Diego make $64 per day. What are the Marginal..
When is the price elasticity of demand likely : Whenever a determinant of supply other than ---------price changes, the supply curve shifts. Elasticity is.  When the price of used cds is $4, Daphne buys five per month. When the -----   price is $3, she buys nine per month. If the price of milk ris..
Calculate the company''s roi efficiency : Calculate the company's ROI efficiency
What is the magnitude of the force that earth exerts on bag : You hang a book bag on a spring scale and place the bag on a platform scale so that the platform scale reads 26.7N and the spring scale reads 14.6NDraw a force diagram for the bag.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd