User Account

All Pages

What is the expected average accounting rate of return

Assignment Help Financial Accounting
Reference no: EM132790684

Questions -

Q1. Joe's burger shop is considering opening a new outlet for a period of three years. The up-front costs are $288,000 (no salvage value). The outlet is expected to earn net income of $31,500 a year. What is the expected average accounting rate of return on this venture?

a. 14.93%

b. 21.88%

c. 43.75%

d. 31.25%

e. 38.76%

Q2. Matrix, Inc. has 20,000 shares of common stock outstanding at a market price of $26 a share. This stock was originally issued at $19 per share. The firm also has a bond issue outstanding with a total face value of $300,000 which is selling for 97 % of face value. The cost of equity is 10 % while the after-tax cost of debt is 5 %. The firm has a beta of 1.2 and a tax rate of 35 %. What is Matrix's weighted average cost of capital? Please show your work!

Q3. NPV and IRR can lead to different decisions in situations investment decision involves mutually exclusive choices.

a. TRUE

b. FALSE

Reference no: EM132790684

Questions Cloud

What has been the implied volatility on the underlying asset : What has been the implied volatility on the underlying asset? How has it compared to that of the market? How does that affect the option prices in terms
How large does the approximate probability of expropriation : How large does the approximate probability of expropriation in year 5 have to be before the investment has a negative NPV
Define how cookies can show that a user has visited a site : Define several forms of metadata that can be useful to an investigation. How are valuable to an investigator? Using Chapter 10 as a reference.
Under pressure to reduce costs : You're under pressure to reduce costs. What options would you explore? Would you consider sourcing some of components from countries with lower material costs
What is the expected average accounting rate of return : The up-front costs are $288,000 (no salvage value). What is the expected average accounting rate of return on this venture
What ended up happening with the prices : How have the options (Both put and call) changed over the time you have kept an eye on them during our semester? What ended up happening with the prices?
What is the segment margin for the motor division : The Motor Division of Farrow Industries reports the following information:Contribution margin = $2,300,000. What is the segment margin for the Motor Division
Why the topic is important for your peers to understand : Write 500 words or more explaining why this topic is important for your peers to understand. (for salesforce point of view or cloud engineering).
Determine the cost of cellular phone : Determine the cost of cellular phones that would appear in each of the Raw materials inventory accounts on September 30, 2020.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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