Reference no: EM133069092
Question -
Q1) Which of the following is a difference between economic value added (EVA) and residual income?
a. Economic value added (EVA) lays emphasis on before-tax operating profit and the actual cost of capital, whereas residual income uses minimum expected rate of return.
b. Economic value added (EVA) lays emphasis on minimum expected rate of return, whereas residual income uses before-tax operating profit and the actual cost of capital.
c. Economic value added (EVA) lays emphasis on minimum expected rate of return, whereas residual income uses after-tax operating profit and the actual cost of capital.
d. Economic value added (EVA) lays emphasis on after-tax operating profit and the actual cost of capital, whereas residual income uses minimum expected rate of return.
Q2) AquaShine Inc. has a number of divisions, including the Beige Division, a producer of fabric, and the Purple Division, a fabric painting division. The cost per yard of the cloth manufactured by Beige Division of the AquaShine Inc. is as follows:
Direct material $18
Direct labor $5
Variable overhead $2
Fixed overhead $5
Calculate the transfer price if the company allows transfer pricing at cost plus 10%.
a. $27
b. $35
c. $30
d. $33
|
Finance the purchase of a large tract of land
: You have just arranged for a $100,000 mortgage to finance the purchase of a large tract of land. The mortgage has a 12% NIR, and it calls for monthly payments o
|
|
Positive value and number of shares
: BBC will pay a dividend of $29 per share at the end of year 1 and a liquidation dividend of $102 per share at the end of year 2.
|
|
Cash budget policies and tacticsmis-synchronization
: By setting up a cash budget policies and tacticsmis-synchronization" the business firm may have to handle the " in its cash budget.
|
|
Solving for the wacc average risk
: The WACC is used as the discount rate to evaluate various capital budgeting projects. However, it is important to realize that the WACC is an appropriate discou
|
|
Calculate the transfer price
: The cost per yard of the cloth manufactured by Beige Division of the AquaShine Inc. is as follows: Direct material $18. Calculate the transfer price
|
|
Calculate the present values and effective rents
: You are appointed by the owner of an office building, Monument Tower, as the property manager. You are currently negotiating a 5-year lease with an IT company,
|
|
Estimating the quarterly payment
: Chuck borrowed $3,500 to consolidate his debts. Since Chuck had an excellent credit rating, he was able to borrow at a 12% effective annual rate.
|
|
Prepare the journal entries to sell the assets
: Prepare the journal entries to sell the assets, distribute any gains or losses to the partners, pay the liabilities and distribute the cash to the partners
|
|
What are the 4 spot rates or zero yields
: For this question, assume annual compounding. The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000.
|