What is the accounting profit for the firm

Assignment Help Microeconomics
Reference no: EM133273951

Consider a small firm that had $320,000 in revenues this past year. The firm had expenses of $240,000, which included interest payments on a $100,000 loan have taken out at an 8% interest rate. The firm has also raised $400,000 in equity from investors who expect a 12% return.

a) What is the accounting profit for the firm?

b) What is the EVA for the firm?

c) Is this firm provided a good use of capital

Reference no: EM133273951

Questions Cloud

Describe the importance of liquidity : Describe the importance of liquidity and profitability in a CRT Business.
Discuss the risk management techniques : Discuss the risk management techniques that UR plc could use to improve the management of risk exposures and aggregation issues
What elements are you most concerned with in terms : EVSP 628 American Public University What elements are you most concerned with in terms of evaluating a strategy? When thinking about your own work experience
Contradictions necessitate existence of economy : How are we, as a species, physically ill-suited to the natural world while also being psychologically ill-suited to one another? How do these two contradictions
What is the accounting profit for the firm : Consider a small firm that had $320,000 in revenues this past year. The firm had expenses of $240,000, which included interest payments on a $100,000 loan have
What operations improvements would you advise : MGT 7321 Algonquin College What operations improvements would you advise these establishments make as it relates to their waiting-line model and / or customer
What is approximate percentage return on invested capital : What is his approximate percentage return on invested capital if the stock price went down to $55? Show calculations
Us inflation and on us unemployment : Find an article in the news or a podcast related to the business cycle to summarize and discuss. I would suggest looking for something related to the current st
What the gdp of country will be next year : A developing country has a saving rate of 12 percent and an incremental capital output ratio of 3. Using the Harrod-Domar model, calculate what the GDP of this

Reviews

Write a Review

Microeconomics Questions & Answers

  Does the eoq also double

The annual holding cost per unit is $2.50, and the cost to place an order is $50. Suppose demand for TricFlexers doubles to 32,000. Does the EOQ also double ? Explain what happens.

  Calculate the price elasticity

The demand for good X has been estimated by Qxd = 6-2PX+5Py. Suppose that the good X sells at $3 per unit and good Y sells for $2 per unit. Calculate the price elasticity.

  Describe the four types of monopolies

Describe the four types of monopolies by using a graphic organizer similar to the one below.

  What is the shop current average inventory level

One of the top-selling items at a gift shop at Hilo, HI are autographed pictures of Jack Star. Sales are 18 pictures per week, and the supplier charges $60 per

  Determinations of market

How do markets determine the payments to the various factors of production? How do markets determine the distribution of income?

  A baseball team plays in a stadium that holds 55000

a baseball team plays in a stadium that holds 55000 spectators. with ticket prices at 10 the average attendance had

  What happens to the equilibrium price and quantity

Due to a technological advance in both markets, the supply curve of both markets doubles the supply of products.

  Explain the meaning of nominal interest rate

Describe problems that make the consumer price index an imperfect measure of the cost of living. Explain the meaning of nominal interest rate and real interest.

  Determine which should be taxed more

If the government wants to raise a particular level of revenue in a way which minimises dead weight loss then should CRGs and RPGs be taxed similarly.

  Determine the payback period for the new switchboard

The local hospital has just implemented a totally automated switchboard that cost $205,000 to install. The switchboard replaced four operators who were paid.

  Calculate alternative measures of industry structure

Write a short history about the company, major products, and location - determine the factors that will influence demand for their products.

  Explain the difference in the given points

In both perfectly competitive and monopolistically competitive markets, when firms are making positive economic profits, other firms will enter until price.

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