What is the return on invested capital

Assignment Help Finance Basics
Reference no: EM13263276

Spencer Inc. has the following information for the current year: Net income = $600; Net operating profit after taxes (NOPAT) = $500; Total assets = $4,000; Short-term investments = $500; Stockholders equity = $2,000; Debt = $1,000; and Total net operating capital = $2500. What is the Return on invested capital (ROIC) for the current year?

a. 15.0%
b. 20.0%
c. 24.0%
d. 25.0%
e. 30.0%

 

Reference no: EM13263276

Questions Cloud

How long does an hour on the ship last : Mario is watching Luigi fly past in a spaceship at 1.63×108 m/s. How long does an hour on the ship last, according to Luigi
Which company stock is the most attractive and why : In your opinion, which company stock is the most attractive and why? (Please show your calculations)
What is the modified duration of the bond : A 5 year par value bond ($1,000) has an annual coupon rate of 8%. What is the modified duration of the bond? Use duration table (Note: discount rate is 8%)
Compute the full load line current and output hp : A 3-phase, 440VAC, 6-pole, 60Hz, wye connected induction motor takes 30KVA at .8 power factor lagging, and runs at a slip of 3.5% at full load. The stator copper losses are 500W, and the rotational losses are 350W.
What is the return on invested capital : What is the Return on invested capital (ROIC) for the current year?
What amount of shipping department costs : During the period, the Far East sales office generated 684 orders for a total of 6,120 items. These orders were shipped in 1,474 boxes. What amount of shipping department costs should be allocated to these sales?
What will be the peak current through the switch at instant : A permanent magnet DC motor with a 10 ohms armature is stopped by dynamic braking. at operating speed, the counter EMF in the motor armature is 15 volts. What will be the peak current through the switch at the instant it shorts out the motor
Determine the allowable shaft load in horsepower : A three-phase, 125-hp, 60Hz, eight-pole, 575-V, design B induction motor is to be operated from a 50-Hz system. Determine (a) allowable voltage at 50 Hz; (b) allowable shaft load in horsepower; (c) new synchronous speed
What is maximun combined power that can be delivered to load : A three phase transformer is constructed from three 3kVA transformer. Secondaries are wired in Delta configuration with a balanced load. What is the maximun combined power that can be delivered to the load

Reviews

Write a Review

Finance Basics Questions & Answers

  What cash price should duncan accept on a tv set listed

What cash price should Duncan accept on a TV set listed at $1195 if Duncan could use the cash to pay off debt now, on which it pays a 13.5% simple rate of interest ?

  Use of debt in capital structure

Why might firms whose sales levels change drastically over time choose to use debt only sparingly in their capital structures?

  Forecast book value and return on common equity

An analyst presents you with a following pro forma that gives her forecast of earnings and dividends for 2007 -2011. She asks you to value the $1,380 millions shares outstanding at the end of 2006,

  What is the growth rate

ABC is expected to pay a dividend of $1.7 per share at the end of the year. The stock sells for $148 per share, and its required rate of return is 17.9%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (..

  What specific product characteristics for each influenced

How price sensitive does this product appear to be, based on your conjoint analysis? What specific price/market information lead you to this conclusion. Be specific.

  Interpreting relationship between net income and cash flow

Kroger a retail grocery store chain growing at approximately the same rate as the population. Find each firm and explain your reasoning.

  Global manufacturing

You are employed by a CPA firm that has an international client, Global Manufacturing, with home offices in a country in the European Union.

  Entry for acquisition of property

Valdilla's Music Store acquired Land and old buildling in exchange for 50,000 shares of its common stock, par $0.50 and cash of $80,000.

  Computing gross profit of the project

Must you project that firm gross profit will rise next year? If you project that gross profit will rise is the increase a result of volume growth price growth or both?

  Achievement of organizational goals

At Sandwich Blitz, Jenny noticed what appeared to be a discrepancy in the time sheet of one of consumer associates. When she asked unit manager about this, she learned that the crew supervisor had allowed the associate to swap out work hours against ..

  Comparable transaction analysis

Company A shares are currently trading at $50 per share. A survey of Wall Street analysts disclose that EPS expectations for firm A for the full year 2003 are $2.50 per share.

  Problems on present value and bonds

A bond with an yearly coupon of $100 originally sold at par for $1,000. The current market interest rate on this bond is 9 percent.

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