How long is the expected return on invested capital

Assignment Help Financial Accounting
Reference no: EM131208464

Y Corporation (which has no-debt) has operating income of 1500, 100 shares outstanding and a current market price of 236 per share. It is currently paying no dividends, but it forecasts a short term return on invested capital of 18 percent. Its weighted average cost of capital is 12 percent.

Assuming that it is paying no dividends, how long is the expected return on invested capital of 18 percent expected to continue before it returns to 12 percent?

Reference no: EM131208464

Questions Cloud

Whats shakespeare telling his audience about status of women : What is Shakespeare telling his audience about the status of women through these characters?  -What clues do we get about their social positions as women?
Compute the total and annual returns : Compute the total and annual returns on the following investment. Ten years after purchasing shares in a mutual fund for $8000, the shares are sold for $11,100. The total return is _____% The annual return is ______%
Represents the number of hundreds of units : If the total cost function for a product is C(x) = 8(x+7)^3 dollars, where x represents the number of hundreds of units produced, producing how many units will minimize average cost?
Conduct research on ais - erp systems : HI5019 - STRATEGIC INFORMATION SYSTEMS -  Disk4U is a Sydney based company which sells CDs and Vinyl Records. They are a small family-owned business with four outlets spread around the Sydney metropolis.
How long is the expected return on invested capital : Y Corporation (which has no-debt) has operating income of 1500, 100 shares outstanding and a current market price of 236 per share. It is currently paying no dividends, but it forecasts a short term return on invested capital of 18 percent. Its weigh..
March madness basketball tournament : Two teams will compete in a 2-way playoff with one team continuing on. Four teams compete in the 4-way playoff with 3 teams continuing on.
Journal entry to record income taxes payable : The accounting records of Shinault Inc. show the following data for 2014. Life insurance expense on officers was $8,400. Equipment was acquired in early January for $341,100. Straight-line depreciation over a 5-year life is used, with no salvage valu..
How many different ways can the selection be made : A teacher wishes to pick a hall monitor and an assistant hall monitor from her class of 29 students. In how many different ways can the selection be made?
What happened to the current flowing from the source : What happened to the current flowing from the source when the switch closed? Why?

Reviews

Write a Review

Financial Accounting Questions & Answers

  The activity method of depreciation

The activity method of depreciation and For income statement purposes, depreciation is a variable expense if the depreciation method

  Decreases partner basis in partner partnership interest

Barbara and Bill formed an equal partnership, B&B, a general partnership, on January 1, 2015. Barbara contributed $100,000 in exchange for her one-half interest. Bill contributed land worth $100,000 that had an adjusted basis to him of $30,000 in exc..

  Costs are included in a recent summary

The following costs are included in a recent summary of data for a company: advertising expense, $96,500; depreciation expense - factory building, $144,500; direct labor, $261,500; direct material used, $311,500; factory utilities, $116,500; and sale..

  Operating-financing and investing activities

(Learning Objective 2: Distinguish among operating, financing, and investing activities—indirect method) Smith Clinic, Inc., is preparing its statement of cash flows (indirect method) for the year ended March 31, 2012. Consider the following items in..

  Assume that a company sold a delivery van that had been

assume that a company sold a delivery van that had been used in the business for three years. records of the company

  Smuggling teenage girls and boys out of the u.s

Pre-search Activities A confidential informant has provided your department with detailed information related to a human trafficking operation. The informant has identified and confirmed that the operation is involved in smuggling teenage girls and b..

  What is future value of annuity-compounded continuously

What is the future value of an annuity of 17 deposits of $2300 each year with nominal rate of interest being 10% compounded continuously?

  Positive confirmation effort for balance sheet

The following responses, A-E, were received from a positive confirmation effort for balance sheet dated December 31, 2013, related to accounts receivable. We cannot answer your request for confirmation; we use an accounts payable voucher system and c..

  How much is in this account after years

Every month you put $100 into a savings account which pays 5% interest compounded monthly. At the end of each year you receive a $500 bonus which you place directly into your “house fund”. How much is in this account after 5 years?

  Impact of increase in production volume on sales cost and

impact of increase in production volume on sales cost and income.redi-watt generators inc. produced emergency backup

  What net annual cash inflow must the store generate

What net annual cash inflow must the store generate for Anita to earn a 14% return over the 10-year period - Anita will not receive back her original investment at the end of the contract.

  Evaluate the internal depreciation charge

Evaluate the internal depreciation charge that was made last year

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