User Account

All Pages

Evaluate the two divisions in terms of EVA

Assignment Help Accounting Basics
Reference no: EM132534289

Question - Salsa Grocery has two divisions. One division, STORES, sells groceries through traditional grocery stores. The second division, CYBER, was formed two years ago and sells groceries through an online grocery ordering service. Data for the past year for the two divisions are as follows.

 

Stores

Cyber

Total assets

$120,000,000

$15,000,000

Current liabilities

4,500,000

2,500,000

Net income (loss)

10,000,000

1,000,000

Weighted-average cost of capital

8%

10%

Required -

a. Evaluate the two divisions in terms of EVA.

b. It might be better to evaluate the CYBER division in terms of a balanced scorecard rather than just focusing on EVA. Is the statement true or false?

c. Given below is the list of performance evaluation measures. Identify if they relate to business process or to customer perspectives.

Reference no: EM132534289

Questions Cloud

Determine what will be the effect on net income : Waterway has sufficient unused capacity to produce the 2700 scales. If the special order is accepted, what will be the effect on net income?
Determine the ending owners equity of a business : Question - Determine the ending owner's equity of a business having a beginning owner's equity of $4,300, withdrawals of $1,500
What the equivalent units of production for the period : A process with no beginning work in process, What The equivalent units of production for the period for conversion costs were?
Essay about the concept of chemical incompatibility : Compose an essay about the concept of chemical incompatibility including practical information involving two common chemical products
Evaluate the two divisions in terms of EVA : Salsa Grocery has two divisions. One division, STORES, sells groceries through traditional grocery stores. Evaluate the two divisions in terms of EVA
Make the unadjusted trial balance : Provide the journal entries for the transactions.Post the entries to the ledger using T-accounts. Prepare the unadjusted trial balance
Conduct business internationally : What are the reasons why Derrido might decide NOT to conduct business internationally?
What was the root-cause : What was the root-cause which shift the industry from traditional costing to ABC system, Explain with at least two examples. In detail
How to prepare a standardised work document : How to prepare a standardised work document suggesting how to eliminate variance to process?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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