Sometimes analysts use the average of capital at the start and end of the year to calculate
Question:
Sometimes analysts use the average of capital at the start and end of the year to calculate return on capital. Provide some examples to illustrate when this does and does not make sense.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (15 reviews)
Recall that return on capital ROC equals the total profits earned for debt and equ...View the full answer
Answered By
Benish Ahmad
I'm a professional software engineer. I'm lectutrer at GCUF and I have 3 years of teaching experience. I'm looking forward to getting mostly computer science work including:
Programming fundamentals
Object oriented programming
Data structures
object oriented design and analysis
Database system
Computer networks
Discrete mathematics
Web application
I am expert in different computer languages such as C++, java, JavaScript, Sql, CSS, Python and C#. I'm also have excellent knowledge of essay writing and research. I have worked in other Freelancing website such as Fiverr and Upwork. Now I have finally decided to join the SolutionInn platform to continue with my explicit work of helping dear clients and students to achieve their academic dreams. I deliver plagiarism free work and exceptional projects on time. I am capable of working under high pressure.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
Question Posted:
Students also viewed these Corporate Finance questions
-
The Larsons use the average of six months as their budget starting point in each category. Find each average.
-
What two formulas can be used to calculate return on investment? What additional information is provided by the use of the Du Pont model to calculate ROI?
-
DoorDash acquired 51% of the common stock of Wolt on December 31, 2021, for $8,100,000,000. At the date of acquisition, Wolt reported common stock with a par value of $10,000,000,000, additional...
-
Find the following probabilities: a. P(X = 3) when X Bin(5, 0.2) b. P(X 2) when X Bin(10, 0.6) c. P(X 5) when X Bin(9, 0.5) d. P(3 X 4) when X Bin(8, 0.8)
-
How does the resistance for copper and for silicon change with temperature? Why are the behaviors of these two materials different?
-
Find five interesting facts in Table 1.1. TABLE 1.1 Basic Characteristics of Selected Countries GNP per capita Index of Openness Goods & Services 2009 Population Area (millions) (1,000s sq. km.) Avg....
-
The City of Phoenix, Arizona, has a variety of General Fund investments. The city had General Fund investments at July 1, 20X5, with a fair value of $29,269,000 and accrued interest receivable of...
-
Molin Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied...
-
Data analytics is the process of examining data sets in order to draw conclusions about the information they contain. If you havent completed any of the prior data analytics cases, follow the...
-
We noted that, when calculating EVA, you should calculate income as the sum of the aftertax interest payment and net income. Why do you need to deduct the tax shield? Would an alternative be to use a...
-
Listed below are six transactions that Dynamic Mattress might make. Indicate how each transaction would affect (a) Cash and (b) Working capital. The transactions are i. Pay out an extra $10 million...
-
Distinguish between composites and alloys? Give several examples.
-
For the cooling tower described in Example 19.3, predict the effect of increasing the air rate by 20 percent with the same liquid rate and a wet-bulb temperature of 75F. Example 19.3 A counterflow...
-
Two identical 9. 60-g metal spheres (small enough to be treated as particles) are hung from separate \(300-\mathrm{mm}\) strings attached to the same nail in a ceiling. Surplus electrons are added to...
-
Suppose two particles carry a positive charge of \(1.00 \mathrm{C}\) for every kilogram of their mass. Compare the gravitational force and the electric force they exert on each other at a given...
-
You are an astrophysicist working on a problem involving Saturn's rings and trying to figure out why the smaller ice chunks in the rings stick to larger chunks. You hypothesize that as the chunks...
-
You have two rods A and B, both made of a nonconducting material. Initially, neither rod is charged. A sphere carrying 100 units of surplus positive charge is placed close to the left end of...
-
Is a GC-subcontractor pay-when-paid contract clause ethical? Is it legal?
-
g(x) = x 5 5x 6 a. Show that g(x) = 0 has a root, , between x = 1 and x = 2. b. Show that the equation g(x) = 0 can be written as x = (px + q) 1/r , where p, q and r are integers to be found. The...
-
The following table gives data on the shares of household income by quintile in the United States in 2005. Draw the Lorenz curve, and calculate the Gini coefficient. Quintile Lowest Second Third...
-
Curtis Bog, chief financial officer of Sphagnum Paper Corporation, is reviewing a consultant?s analysis of Sphagnum?s weighted-average cost of capital. The consultant proposes Mr. Bog wants to check...
-
Nevada Hydro is 40 percent debt-financed and has a weighted-average cost of capital of 9.7 percent: Banker?s Tryst Company is advising Nevada Hydro to issue $75 million of preferred stock at a...
-
Sometimes APV is particularly useful in international capital investment decisions. What kinds of tax or financing side effects are encountered in international projects?
-
Janice will need to pay $200 at the end of every month for the next 12 months, except for the payment of the 8th month. What is the present value, assuming a rate of 4%, compounded quarterly?
-
List and explain two management tools in the planning process and two measurable performance indicators. Explain in detail.
-
What does a high PE tell us about the value of the stock price (over or under valued)? What does a low PE tell us about the value of the stock price (over or under valued)? Be specific with your...
Study smarter with the SolutionInn App