Calculations to your roe decomposition

Assignment Help Accounting Basics
Reference no: EM13924538

1) Decompose Tesla's ROE for the annual periods 2012-2014. Note any trends you observe.

2) Tesla notes that Q1 automotive revenue includes $51 million from the sale of ZEV credits.* Assuming that 2012-2014 annual revenues are comprised of the same percentage of ZEV revenues as was the case in Q1 of 2015, re-compute Tesla's income after removing the effect of the ZEV sales and decompose ROE using the revised data.

3) Compare your new calculations to your ROE decomposition from question 1.

4) Comment on the quality of Tesla's earnings.

5) Given that Tesla has consistently generated losses, how has the company managed to survive? Read Tesla's Stockholder Letter for the first quarter of 2015. Tesla repeatedly refers to "non- GAAP" results.

6) What are the specific departures Tesla makes from GAAP in computing these numbers?

7) Why do you think the company keeps referring to "non-GAAP" measures?

Reference no: EM13924538

Questions Cloud

Cost driver of customer services costs : Which of the following is not a cost driver of customer services costs? A. All of these answers are correct B. Number of service calls is not a cost driver of customer services costs. C. Hours spent servicing products are not a cost driver of cust..
Create a particular goal behavior : Small steps in behavior that are reinforced, one after the other, to create a particular goal behavior are known as
Compute daily percent changes for twenty five trading days : Compute daily percent changes for 25 trading days. Compute the correlations among these indexes. Rank the correlations from high to low.
Justifying expenditures for new technologies : The process by which a financial transaction is recorded so that its flow through the system can be followed is called:
Calculations to your roe decomposition : Compare your new calculations to your ROE decomposition from question 1. Comment on the quality of Tesla's earnings.
All five of the basic things that scripture : MacArthur states that if you are doing all five of the basic things that scripture says is God's will you can do whatever you want. MacArthur summarizes Gods will by stating that it is "God's will that you be saved, Spirit-filled, sanctified, sub..
Changes in management accounting : Which of the following is not a major factor causing changes in management accounting today?
Reasons that global financial markets : 1. Select the two reasons that global financial markets are important to borrowers 2. The 1922 Fordney­McCumber Act raised U.S. tariffs to historically high levels 3. Approximately 50 percent of all world trade is conducted through regional trade agr..
Interest is payable annually on december : Prepare the journal entries to record the bond transactions for 2013 and 2014.

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