The company’s cost of capital is 8.5%. a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.) d. Is the company creating value for its shareholders?

Answers

Answer 1

Answer:

A. $21.32 millions

B. 10.45%

C. 22.19%

D. Yes

Explanation:

A. Calculation for the Watervan’s economic value added (EVA)

Using this formula

Economic value added (EVA) = [EbIT x (1 - tax rate)] - (Cost of capital x invested capital)

Let plug in the formula

Economic value added (EVA)

= 98 millions x (1 - 0.21) - (8.5% x 660 million)

Economic value added (EVA)= 77.42 millions - 56.1 millions

Economic value added (EVA)= $21.32 millions

Calculation for Tax rate

Tax rate = 15.75/75 x 100

Tax rate= 21%

B. Calculation for the company’s return on capital

Using this formula

Return on capital = Net income/invested capital

Let plug in the formula

Return on capital= 59.25/567 x 100

Return on capital = 10.45%

C. Calculation for return on equity

Using this formula

Return on equity = Net Income/Shareholders equity

Let plug in the formula

Return on equity= 59.25/267 x 100

Return on equity= 22.19%

D. Yes the company is creating value for its shareholders reason been that the company return on equity is on the high side .


Related Questions

What is a stock symbol?

Answers

Answer:

A stock symbol is an arrangement of characters—usually letters—representing publicly-traded securities on an exchange. When a company issues securities to the public marketplace, it selects an available symbol for its shares, often related to the company name.

Explanation:

A copyright protects a company that uses an original author's work without permission. (6 points)

True
False

Answers

Answer:

false

Explanation:

copyright protects the author's work when it is used without permission.

Answer:

es Falso

Explanation:

esperó que te sirva marcarme como mejor respuesta PORFA y gracias

In a society with a market economy, property rights are generally enforced by
A. the banks
B. the courts
C. the producers
D. the consumers

Answers

Answer:

ccccccccccccccccccccccc

Explanation:

The Boston Hotel High-end linens 600-thread-count sheets Coffeemaker and selected teas Imported beer Fresh-squeezed juices Affordability Food and drink Double-thick bath towels Silk pillowcases Raw silk curtains with gold embellishments $100/night four-star rooms Free snacks, shampoo, and conditioner Free wireless Internet

Answers

600 beads of doc green

List the six shifters (NPDs) of demand

Answers

Answer:

Changes in income

Changes in the number of consumers

Changes in consumer tastes and preferences

Changes in consumer expectations

Changes in the price of substitute goods

Changes in the price of complementary goods

Explanation:

Assume that at one point a business sells organizers for a price of $20 each, which cost $10 to produce (variable costs). The business's fixed expenses for the period are $4,000. What is the break-even point?
300 units
200 units
100 units
400 units

Answers

Answer:

400 units

Explanation:

From the contribution margin concept, the break-even point is obtained by dividing the fixed costs by the contribution margin per unit.

For this business, fixed costs are $4,000

Contribution margin per unit  is equal to sales price - variable cost per unit

=$20 - $10

= $10

Break-even point = $4000/$10

=400 units

plz tell me the books that I need to study for bcom 1st year (my major subject is accounts)​

Answers

Answer:

And financial expression

Reyes manufacturing company uses a job order cost system. at the beginning of january, the company had one job in process (job 201) and one job completed but not yet sold (job 200). job 202 was started during january. other select account balances follow (ignore any accounts that are not listed).

Answers

Question Completion:

During January, the company had the following transactions:

a) Purchased $20,000 worth of materials on account.

b) Recorded materials issued to production as follows:

Job Number          Total Cost

201                           $12,000

202                            21,000

Indirect materials       3,200

                              $36,200

c) Recorded factory payroll costs from direct labor time tickets that revealed the following:

Job Number   Hours   Total Cost

201                     100         $2,150

202                    500        10,750

Factory supervisor's         5,000

                                      $17,900

d) Applied overhead to production at a rate of $25 per direct labor hour for 600 actual direct labor hours.

e) Recorded the following actual manufacturing overhead costs:

Items                         Total Cost  Description

Factory rent              $3,100       Paid in cash

Depreciation              2,500       Factory equipment

Factory utilities           1,750        Incurred but not paid

Factory insurance      1,250        Prepaid policy

                                $8,600

f) Completed Job 201 and transferred it to Finished Goods Inventory.

g) Sold Job 200 for $31,000.

Job 202 was still in process at the end of January.

Requirement: Post all transactions to T-accounts, including offsetting accounts, like the Cash Account, etc.

Answer:

Reyes Manufacturing Company

T-accounts:

Raw materials

Account Titles                 Debit     Credit

Accounts payable        $20,000

Job 201                                       $12,000

Job 202                                        21,000

Indirect materials                          3,200

                         

Accounts payable

Account Titles                 Debit     Credit

Raw materials                             $20,000

Job 201

Account Titles                    Debit     Credit

Raw materials                 $12,000

Salaries expenses              2,150

Manufacturing overhead  2,500

Finished Goods                              $16,650

Job 202

Account Titles                    Debit     Credit

Raw materials                 $21,000

Salaries expenses            10,750

Manufacturing overhead 12,500

Ending Balance                              $44,250

Finished Goods Inventory

Account Titles                    Debit     Credit

Job 201                             $16,650

Cost of Job 200 sold                      $

Cost of goods sold

Account Titles                    Debit     Credit

Finished goods                   $

Sales Revenue

Account Titles                    Debit     Credit

Cash                                              $31,000

Cash Account

Account Titles                   Debit     Credit

Sales revenue              $31,000

Manufacturing overhead

Account Titles                 Debit     Credit

Raw materials               $3,200

Salaries expenses          5,000

Job 201                                          $2,500

Job 202                                          12,500

Salaries Expense

Account Titles                 Debit     Credit

Job 201                                        $2,150

Job 202                                        10,150

Manufacturing overhead             5,000

Explanation:

All the accounts involved in Reyes Manufacturing Company's January transactions are posted to the general ledger in the form of T-accounts with debit and credit sides.  The balances are not extracted.

QUESTION
Bill was discharged from his job. He believes he was wrongfully discharged and is
entitled to compensation for being wrongly let go. Bill's employment contract states
that rather than suing for damages, he and his employer must use an alternate method .
to settle their differences-one in which a third party hears both sides and makes a
binding decision.
Given this scenario, which of the following best describes the alternate method
specified in Bill's employment contract?

Answers

Answer:

Employment dispute resolution.

Explanation:

Based on the given scenario of Bob being fired wrongfully from his job and is entitled to compensation and his contract expressly days that instead of suing for damages, he must involve a third party who would listen to both sides and make a binding decision.

The best description of the alternate method is Employment dispute resolution.

What is a plan for how much to spend and how much to save of ones earnings called?
A. a wish list
B. a personal budget
C. a saving account
D. an investment portfolio

Answers

The answer is c hoped this helped

Allesandra would like to work in a school environment, and she knows that she would prefer a career in which she spends lots of work time walking around rather than sitting in an office. a. Elementary school teacher b. Administrative support worker c. Instructional designer d. High school principal

Answers

Answer:

a. Elementary school teacher

Explanation:

An elementary school teacher refers to an individual who is an educational professional and is typically saddled with the responsibility of developing and implementing lesson plans for students in the classroom.

Basically, an elementary school teacher educate students on vital subjects such as mathematics, english language, verbal studies, quantitative reasoning etc. which forms the foundation of a student's future career, observe, analyze and evaluate the performance of each pupil, coordinate all classroom activities, enforce school and classroom rules etc. All of the aforementioned responsibilities are executed or achieved by walking around the classroom to effectively and efficiently monitor and evaluate the pupils.

In this scenario, Allesandra would like to work in a school environment, and she knows that she would prefer a career in which she spends lots of work time walking around rather than sitting in an office.

Hence, the education career which would be the best option for Allesandra, is to work as an Elementary school teacher.

Answer:

a

Explanation:

my school teacher

2. Marketing, put simply, attempts to do which of the following?
A. Get people to buy things they do not need
B. Make people love spending money
C. Hide any flaw a product or service has
D. Satisfy people’s needs

Answers

Answer:

D. Satisfy people's needs

Hope it helps

Nola Potter earns a salary of $1,200 a month and a commission of 7.5% on all sales over $4,000. This month her sales were $21,400. Find her total earnings for the month.

Answers

Answer:

$ 2,805  

Explanation:

Nora has a salary of $1200

The commission is paid on all sales above $4000 at 7.5%

Current month sales are $21,400.

Commissions to be paid will be 75% of $21,400

=7.5/100 x $21,400

=0.075 x 21,400

=$1,605

Nora's total earnings will be salary plus commissions

=$1,200 +$1,605

=$ 2,805

____ are specialized accountants who look for evidence of improper accounting methods.

A. Public accountants
B. Government accountants
C. Fraudulent accountants
D. Forensic accountants

Answers

Answer:

i think that the answer is C

Explanation:

Answer:

Forensic accountants

Explanation:

just trust me on this man

Which is NOT a career cluster?
A.
Agriculture, food and natural resources
B.
Human services
C.
Health sciences
D.
Business, management, and administration

Answers

Answer:

All are career clusters

Explanation:

1. Agriculture, food, and natural resources

The agriculture, food, and natural resources cluster encompass everything associated with the production of agricultural products. Careers' titles in the cluster include farmers, veterinary officers, and scientists.

2. Human services

This cluster includes cosmetologist psychologists, social workers, hairdressers, and other professionals related to human beauty and mental wellness sub-sectors.

3. Health sciences

Professionals in the Health Sciences cluster work in hospitals, chemists, clinics, and patients' homes. They include nurses, doctors, clinicians, pharmacists, paramedics, and healthcare operators.

4. Business, management, and administration

The cluster consists of careers in business-related fields. They include marketers, finance and business analysts, accountants, managers, and HR experts. It also features many junior entry-level positions, like clerks, typists,  secretaries, and front office workers.

Answer:

None, they are all career clusters

Explanation:

I hope this helped buddy.

This is how you ask a question cuz uk some peeps dont know :)

Answers

Answer:

Ok

Explanation:

Nice to know.

Answer:

now that's how you ask a question kids

A market ____ analyst studies prevailing market trends and forecasts potential sales for a product.?

Answers

Explanation:

A market ____ analyst studies prevailing market trends and forecasts potential sales for a product.?

HELP ME PLEASE !!!

which of the following is a benefit that computer technology has provided to the realm of financial administration?
a. financial records can be searched more easily
b. less data availability
c. less security of financial records
d. slower data entry

Answers

Answer:

a. financial records can be searched more easily

Explanation:

Computer technology has aided in the automation and integration of an organization's financial records in a single system. A business's financial data relating to several financial years are accessible from a single computer. Computer technology has made it easy to collect, analyze, report, and interpret financial records.

Through computer technology, financial records are organized and stored in a manner that is easy to retrieve. It takes very little time to access the required financial information as long as it was labeled correctly and stored.

Answer:

1 selling stock before telling about the downfall one

2 A or financial records can be searched more easily

3 crowdfunding

4 forecast

The population hypothesis regarding ethical management models is A. the three models approximate a normal, bell-shaped curve. B. that the moral management model is the largest segment of the normal curve. C. that the immoral management model is the largest segment of the normal curve. D. the three models exhibit a skewed curve, weighted toward either moral or immoral management models, depending on the society being studied.

Answers

Answer:

A

Explanation:

What is not a good approach to a question about your weaknesses? You should avoid using the word "weakness," but answer honestly. You should exaggerate a little in your answer to impress the interviewer. You should show how you've been working to improve in the area you mention. You should avoid trying to make it a positive: "I tend to work too much."

Answers

B . You should exaggerate a little in your answer to impress the interviewer.

Explanation:

im smart <3

Answer:

its b

Explanation:

i took the test and got 100%

Nora has heard that opening a lot of credit card accounts is a good way to build credit. She currently has five cards, but is sometimes forgetful in paying her bills on time and usually has a balance on each card. Her favourite store is offering a $50 coupon on her next purchase, with the promise of more coupons in the future, if she opens a credit card. She decides to open the store credit card to get the discounts.

How would Nora use the decision making steps in this scenario?

Is this a good or bad debt move? Why?

Answers

This is a bad move. You should work on getting a high credit score on one card not multiple.

One month ago, Kyle made a goal to save $800 for a new video camera. The deadline is in seven months. He now has $110 saved. Evaluate his progress toward reaching his goal. Is Kyle on track to reach his goal? Yes or no?

Answers

Answer:

No, he will not reach his goal if he saves $110 per month.

Explanation:

Answer:

yes

Explanation:

What is the difference between quality leadership and survival pricing?
A. Quality leadership yields a higher profit while survival pricing
yields a lower profit.
B. Quality leadership is intentionally setting high prices while survival
pricing is intentionally lowering prices.
C. Quality leadership is for higher quality products while survival
pricing is for lower quality products.
D. Quality leadership is for larger business while survival pricing is for
smaller business.

Answers

Answer:

b.

Explanation:

The distinction between quality leadership and survival pricing is that the former involves purposefully raising prices, while the latter involves purposefully lowering prices.

Thus, Option B is correct.

What are the prices for Quality Leadership and Survival?

When a business strives to offer the greatest product on the market and charges more than its rivals, this is known as product quality leadership. Typically, these businesses are market leaders. The stage in the product life cycle can also affect the pricing targets for specific goods or services. Survival—a strategy used when a company needs to set prices at a level that just makes it possible for it to stay in operation and pay for necessary expenses.

For a brief period of time, survival takes precedence over making a profit. The only time that survival pricing should be applied is temporarily or on a limited basis.

For more information about quality leadership refer to the link:

https://brainly.com/question/14157544

#SPJ5

A type of investment that gives a person a share of ownership in a company
is a
A. savings account
O B. bond
O c. stock
O D. hedge fund

Answers

The answer is C-stock I think

A type of investment that gives a person a share of ownership in a company is a stock. Thus, option (c) is correct.

What is a stock?

A stock is a type of investment that gives a person a share of ownership in a company. When a person buys a stock, they become a partial owner of the company and are entitled to a portion of the company's profits.

Stocks are traded on the stock market, and their prices can fluctuate depending on a variety of factors, such as the company's performance, investor sentiment, and overall market conditions. Stocks are important because they provide investors with the potential to earn returns on their investments, and they provide companies with capital to fund their operations and growth.

Therefore, it can be concluded that a type of investment that gives a person a share of ownership in a company is a stock. Hence, option (c) is correct.

Learn more about stock, here:

https://brainly.com/question/29992015

#SPJ7

name every my hero acadamia character

Answers

Answer:

Izuku Midorya (All for one quirk, main protagonist)

Ochaco Uraraka (Zero-Gravity)

Iida Tenya (Engine)

Katsuki Bakugo (Explosion)

Tsuyu Asui (Frog)

Shouto Todoroki (Half-cold, half-hot).

The main teachers would probably be Shouta Aizawa (aka Eraserhead; their homeroom teacher) and All Might, the No. 1 hero and Izuku’s mentor.

The rest of Class 1A includes: Momo Yaoyorozu (Creation), Yuga Aoyama (Naval Lazer), Mina Asahido (Acid), Eijiro Kirishima (Hardening), Mezo Shoji (Dupli-Arms), Toru Hagakure (Invisibility), Koji Koda (Ani-voice), Denki Kaminari (Electrification), Hanta Sero (Tape), Rikido Sato (Sugar Rush), Masahirao Ojiro (Tail), Kyouka Jiro (Earphone Jack), Fumikage Tokoyami (Dark Shadow, and finally, Minoru Mineta (Pop-Off)

Explanation:

Answer: cant name all of them buti ill try

Explanation: izuku midoriya

                      shoto todoroki

                       katsuki bakugo

                      Eijiro Kirishima

                       Momo Yaoyorozu.

                        Tenya Ida.

                        Shoto Todoroki.

                        Tsuyu Asui.

                     Kyoka Jiro.

                Mashirao Ojiro

According to leading entrepeneur, Guy Kawasaki, the best reason to start a new business is to ______.


be your own boss

make a large profit

make the world a better place

achieve success

Answers

Answer:

make the world a better place

Explanation:

Answer:

C. Make the world a better place

Explanation:

"The best reason to start an organization is to make meaning - to create a product or service to make the world a better place."

—Guy Kawasaki, entrepreneur, investor, author

Gillespie enterprises inc. Issued $26 million in new common stock.
b. Cal state university received $20,000,000 cash for 80,000 five-game-season football tickets. None of the games have been played.
c. Cal state played the first football game referred to in (b).
d. Hall construction company signed a contract with a customer for the construction of a new $500,000 warehouse. At the signing, hall received a check for $50,000 as a deposit to be applied against amounts earned during the first phase of construction. Answer from hall's standpoint.
e. A popular snowboarding magazine company received a total of $1,800 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. F. T-mobile sold a $100 cell phone plan for service in september to a customer who charged the sale on his credit card. Answer from the standpoint of t-mobile.

Answers

Question Completion:

For each of the transactions, if revenue is to be recognized in September, indicate the amount.  If revenue is not to be recognized in September, explain why.

Answer:

a. The issue of $26 million in new common stock by Gillespie Enterprises, Inc. is not a revenue transaction.  It is an equity transaction.  Revenue cannot be recognized, but it is a Cash Inflow from financing activity that should be recognized.

b. Since none of the games had been played, Cal State University should not recognize any revenue.  Revenue can only be recognized when a game has been played and some of the tickets used for the played game.

c. $4,000,000 ($20,000,000/5) should be recognized as revenue since the first football game has been played.  Recall that the tickets were for 80,000 five-game-season football games.

d. From Hall Construction Company's point of records, no revenue had been earned.  The deposit of $50,000 received can only be recognized as revenue when the first phase of construction had been completed.

e. The snowboard Magazine Company cannot recognize any amount out of the $1,800 as the subscriptions received are for the next fiscal year.

f. $100 should be recognized as revenue by T-mobile since the service is for September.

Explanation:

The Revenue from Contracts with Customers (IFRS 15 and ASC 606) standard indicates that revenue can only be recognized when the contract's performance obligation has been fulfilled.

The Howell Company has prepared a sales budget of 40 comma 000 finished units for a​ 3-month period. The company has an inventory of 11 comma 000 units of finished goods on hand at December 31 and has a target finished goods inventory of 13 comma 000 units at the end of the succeeding quarter. It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 61 comma 000 gallons of direct materials at December 31 and has a target ending inventory of 58 comma 000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March​ 31?

Answers

Answer:

Purchases=  123,000 gallons

Explanation:

Giving the following information:

Sales:

40,000 finished units for 3 months.

Finished goods inventory:

Beginning inventory= 11,000 units

Desired ending inventory= 13,000 units

It takes 3 gallons of direct materials to make one unit of finished product.

Direct material inventory:

Beginning inventory= 61,000 gallons

Desired ending invenyory= 58,000 gallons

First, we need to calculate the production for the period:

Production= sales + desired ending inventory - beginning inventory

Production= 40,000 + 13,000 - 11,000

Production= 42,000 units

Now, we can calculate the purchases:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 42,000*3 + 58,000 - 61,000

Purchases=  123,000 gallons

This software application can be used to organize, analyze, and illustrate data.

Answers

Answer:

its Excel :)

Explanation:

I learned abt it

Answer:

person above me

Explanation:

please help me with this match the column​ if i get perfect answer then i will give brainliest

Answers

Answer:

what do you need help on

Explanation:

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If a car is traveling at an average speed of 70 kilometers per hour how long does it take the car to travel 14 kilometers All against Common Sense. Back in mid 80s, the US economy was very bad. It was much worse than it is now. At that time, to the surprise of many people, US automakers raised the prices of their cars. The common sense says that when the sales are slow, we lower prices and offer better deals to customers. Why do you think that the US car manufacturers increase the prices? Read the sentence.Despite it winning awards in six countries, the ticket sales lagged for the action film.Which option best revises the sentence to correct the misplaced modifier?Despite winning awards, the ticket sales for the action film lagged in six countries.Ticket sales lagged for the action film, despite its winning awards in six countries.The ticket sales, despite winning awards in six countries, lagged for the action film.The action film's ticket sales lagged despite winning awards in six countries. The list below describes the qualifications for a holding a particulargovernment office.Be a "natural-born citizen"Be at least 35 years of ageHave lived int eh United States for at least 14 yearsWhich government office has these requirements? PLEASE HELP I WILL GIVE YOU BRINLISTWhich table of values represents the equation Cost = Number of toppings x 2 + 3 * What kind of person is most likely to hold a left-wing political ideology?a conservativea liberala Libertariana moderate In the figure, the measure of angle 9 is 80 degrees and the measure of angle 5 is 68. Find the measure of each angle. What is 3/100 - 1/50 equal? American Romanticism was the first time period in American historywhere America had its own creative literary voice. True False What led to the importation of more slaves in South Carolina during the late 17th Century?The growing demand for cotton in foreign marketsThe growing demand of the naval storesThe growning demand of the fur trade business with the nativesThe growing demand for both rice and indigo Write out the letter with address, date, Remember to use paragraphs, correct SPaG, appropriate beginning and ending.please help me The Sweet Shoppe sells a half-dozen cupcakes for $16.50. The Cupcake Factory sells a dozen cupcakes for $30.00. Jameska purchases two cupcakes from each shop. What is the difference in the purchases?The difference in the purchases is $. Whats the sum of u and 15 $75 dinner; 18% tipExplained step by step pls Plot J(-2,8), K(0,8), L(1,0), and M(1,-2) in a coordinate plane. Then determine whether JK and LM are congruent. A. Cannot be determined from the information given. O B. Cannot use Ruler Postulate for this problem. OC. JK and LM are congruent. D. JK and LM are not congruent. Determine the intercepts of the line.Y-intercept(__ , __) X-intercept(__,__) What is the value of y? Solve: 9m - 3 (m + 6) = 2 (m + 7) please help important!!!!!!!!!!!!! A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent, what maximum initial investment would make the project acceptable? Multiple Choice $638,392.96 $595,833.43 $1,534,047.75 $655,213.49 $684,772.10