User Account

All Pages

What is the residual income of project and top hat division

Assignment Help Accounting Basics
Reference no: EM131781193

The Top Hat Division ofBlandon's Fine Menswear had a prospective investment with the following forecasted results.

Sales $4,500,000
Operating income $675,000
Total assets $3,000,000
Current liabilities $250,000

Management's target rate of return is12% and TopHat's ROI without the above investment is48%.If management evaluates the divisions based on residual income what is the residual income of the project and Top Hat Division managementwould/would not invest in theproject?

A. $(345,000),

B. $345,000,

C. $(315,000), 

D. $315,000,

Reference no: EM131781193

Questions Cloud

Calculate liquidity ratios and long-term debt paying ratios : Calculate at least three liquidity ratios and three long-term debt paying ratios, along with writing the introduction about the company and the conclusion.
What is the optimal production quantity and optimal profit : In the optimal solution, which product(s) will be manufactured? What is the optimal production quantity? What is the optimal profit?
Contracted with a rising star to record eight songs : The Record-a-Song Company has contracted with a rising star to record eight songs.
Spatial informatics industry : Please research the following subjects and explain those in Spatial Informatics industry
What is the residual income of project and top hat division : what is the residual income of the project and Top Hat Division management would/would not invest in the project
Discuss fully international healthcare system : Discuss fully International Healthcare System. What are the forces that drive change in the organization?
Health management education : In completing your health management education, you will acquire a number of competencies enabling you to work in the health care sector.
Attractiveness of the russian ice-cream industry : Analyze the attractiveness of the Russian ice-cream industry using Michael Porter's 5 forces framework.
How much cash was received when the bonds were issued : How much cash was received when the bonds were issued? How much of the discount or premium should be amortized with the first interest payment?

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