Computation of a residual income

Assignment Help Finance Basics
Reference no: EM1311441

Computation of a residual income

A corporation has provided the following data-

Return on investment (ROI)

15%

Sales

$120,000

Average operating assets

$60,000

Minimum required rate of return

12%

Margin on sales

7.5%

The corporation's residual income is-

a)     $1,800

b)    $5,400

c)     $2,700

d)    $3,600

Reference no: EM1311441

Questions Cloud

Contractionary fiscal policy : Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Probability-determining expected value : You play a game with two possible outcomes. Outcome A has probability 0.4 and outcome B has probability 0.6. When B occurs you win $2.00; otherwise, you lose $1.00. What is your expected value for this game?
Make a flexible budgeted income statement : Make a Flexible Budgeted Income Statement using Variable costing and Budgeted Income Statement and Flexible Budgeted Income Statement Variable Costing , Variance Analysis
Probability that student eats at fast food restaurant : Compute the probability that student eats at fast food restaurant 2 or more times per week?
Computation of a residual income : Computation of a residual income and A corporation has provided the following data
Expansionary fiscal policy : In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?
Purpose a master budgeted income statement : Purpose a Master Budgeted Income Statement using Variable costing and Budgeted Income Statement  ( static ) and Flexible Budgeted Income Statement Variable Costing , Variance Analysis
Demand deposit and stock of money : What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Find the position of the object to acquire real : Find the position of the object to acquire real, magnified image, inverted, and virtual, upright image.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Expect share you select to affect return

Would you expect share you select to affect return that you earn on your portfolio. Go through the method of working out why C is the best option for portfolio.

  Excess return each year should the actively managed

Find out excess return each year should the actively managed fund earn to overcome higher fees.

  Computation of yield to maturity when interest is paid

Computation of yield to maturity when interest is paid and compounded annually and bond's rate of return earned

  Computation of gains on transfer of assets

Computation of gains losses on transfer of assets and What are the amount and character of the gains and When does the holding period for the stock begin

  Creating appropriate butterfly spread

Three-month European call options on BCE stock, with strike prices of= $30, $40 and $50, cost $7, $3 , and $2, respectively. Create an appropriate butterfly spread.

  Computing shop-s returns-allowances and cost of goods sold

"The Happy Auto shop has following annual information: gross sales= $700,000; net sales= $696,000; and gross profit= $448,000. What are the shop's returns and allowances and cost of goods sold?"

  Calculation of npv of lease payments

Calculation of NPV of lease payments and capital contribution decision to the lease project proposed and Why did you select the cash flow level and the discount rate that you used

  Describe the capital budgeting

Describe the Capital Budgeting and what is the average of using simulation in the capital budgeting process is

  Computation of value of the firm

Computation of Value of the equity, debt, firm, common share, expected earnings, ACC and rate of return and Analyze this proposition by computing

  Computing price of at-the-money european put on futures

An at-the-money European call on the futures sells for= $5.50. Determine the price of at-the-money European put on the futures? Suppose both the call and put have the same maturity.

  How would investors and management view eva and fcf?

How would investors and management view EVA and FCF? Try one that you are familiar with-you shop at their store, eat at their restaurants, or wear their clothes. On their Web site, try to find their annual financial report.

  Computing wal-mart-s original strategy for creating value

Wal-Mart, discount merchandiser, started by putting large stores in small Sunbelt towns that its competitors had neglected. Compute Wal-Mart's original strategy for creating value?

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