A company has capital employed of $200,000. It has a cost of capital of 12% per cent
Question:
A company has capital employed of $200,000.
It has a cost of capital of 12% per cent per year. Its residual income is $36,000.
What is the company’s return on investment?
Step by Step Answer:
Return on Investment ROI is calculated as net income divided ...View the full answer
Related Video
Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed. In other words, the return on capital employed shows investors how many dollars in profits each dollar of capital employed generates. ROCE is a long-term profitability ratio because it shows how effectively assets are performing while taking into consideration long-term financing
Students also viewed these Business questions
-
1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
-
The following is partial information for Charleston Companys most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda and Midiron....
-
Escuda Company has the following information available for the past year: The companys hurdle rate is 12 percent. 1. Determine Escudas return on investment (ROI) and residual income for each division...
-
For the manipulator shown, find the twist coordinates f; at zero con- figuration and 9st (0) using the product of exponentials approach. Use the base and tool frames shown. (b) (10 points) Find efi0i...
-
a. Chevrolet Tahoe with respect to the price of gasoline. b. A full-size pickup with respect to the price of gasoline. As Gas Costs Soar, Buyers Flock to Small Cars Faced with high gas prices,...
-
What are the limitations of the graphical method of solving linear programming problems?
-
\(\lambda_{1}\) and \(\lambda_{2} <0\left(\lambda_{1}, \lambda_{2} ight.\) : real and distinct \()\) a. Unstable node b. Saddle point c. Node d. Focus or spiral point e. Stable node
-
Santiago Manufacturing Company began operations on January 1. During the year, it started and completed 2,000 units of product. The company incurred the following costs. 1. Raw materials purchased...
-
On January 1 , 2 0 2 3 , Malinois Inc. issued $ 1 0 0 , 0 0 0 of 6 % bonds, dated January 1 . Interest is payable semiannually on June 3 0 and December 3 1 . The bonds mature in 1 0 years. The...
-
Textflix is a new idea to help reduce college student cost of textbooks. Textflix is a new project to be undertaken by the Netflix Corporation. Textflix will charge $20 per month to have access to a...
-
At the end of 20X1, an investment centre has net assets of $1m and annual operating profits of $190,000. However, the bookkeeper forgot to account for the following: A machine with a net book value...
-
The director of Donny Co. is reviewing the performance of its division. The following information is available for the year ending 31 March 20X9 for its South division. South division operates in the...
-
How is simulation modeling useful in supply chain risk analysis?
-
OT_2_1. Samsun Sandwich firm special a meeting for will do your sandwiches most economic the one that to determine wants. A total of five different sandwiches, including tuna fish, tuna fish and...
-
The tab contains monthly holding period stock returns for International Business Machines Corp. (IBM), Microsoft Corp. (MSFT), and Caterpillar Inc. (CAT) for the months from January 2016 through...
-
The cash-flows in Project A-E is in real terms considered to be constant over time. This means that all amounts provided above for Project A-E will nominally change over time since they will be...
-
Data for these 23 stores is shown in Table 1 below: Store No Prior Year's Sales Current Year's Sales Current Year's Inv Square ft Avg. Number Sells Lottery Full Time Employees 1 781,793...
-
As a financial consultant, you work with people who are planning to buy a new house. You want to create a worksheet containing variable data (the price of the house, down payment, date of the first...
-
For each of the following, fill in the blank with the word converse, inverse, or contrapositive so that the result is a true statement. (a) The converse of the inverse of p q is the...
-
(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...
-
a) Comment on factors likely to affect the accuracy of the analysis of costs into fixed and variable components. (b) Explain how the analysis of costs into fixed and variable components is of use in...
-
Abourne Ltd manufactures a microcomputer for the home use market. The management accountant is considering using regression analysis in the annual estimate of total costs. The following information...
-
A management accountant is analyzing data relating to retail sales on behalf of marketing colleagues. The marketing staff believe that the most important influence upon sales is local advertising...
-
Write a simple implementation of an LRU (Least Recently Used) cache with a given capacity. If the cache is full, the least recently used item should be evicted when adding a new item.
-
LGP produces computer hardware equipment. The following information was collected for the latest month: Actual market size (units) 32,000 Budgeted market size (units) 20,000 Actual market share 40%...
-
Sandhill Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials...
Study smarter with the SolutionInn App