Question: ROI and economic value added using the Internet. Select one of the following companies (or any company of your choosing) and use the Internet to

ROI and economic value added using the Internet. Select one of the following companies (or any company of your choosing) and use the Internet to explore the company's most recent annual report.

American Airlines (www.americanair.com)

Intel (www. mtel.com)

IBM (www.ibm.com)

W a 1 - M art ( w vv w . w a 1 - i n a r t . c o m )

a. Calculate the company's overall return on investment (ROI). Also, calculate the company's overall economic value added amount. (Assume a weighted-average cost of capital of \0c/c. Calculate the tax rate from the company's income statement by t aking the tax expense divided by income before taxes.) List and explain any assumptions you make.

b. Does the company include a calculation of ROI in its online annual report? If it does, do your calculations agree w ith those of the company? If not, what would be some possible explanations'.1

Step by Step Solution

★★★★★

3.38 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Introduction To Managerial Accounting Questions!

The Massachusetts State Personnel Board wants to know whether merit system salaries are based on job responsibilities, education, or seniority. The board regresses the current annual salaries of...

List four basic financial statement analysis procedures, describe how you would calculate each procedure and discuss why you would use each procedure. In your initial response, please do not use...

Briefly discuss the cost-volume-profit analysis model and how it is used. Use the attached PDF. APA Citation. 300 words. REVISED PAGES 3 Chapter Three 1 Fundamentals of Cost-Volume-Prot Analysis...

Select one of the following companies (or any company of your choosing) and use the Internet to explore the companys most recent annual report. American Airlines (www.americanair.com) Intel...

18.31 Select one of the following companies (or any company of your choosing), and use the Internet to explore its most recent annual report. American Airlines (www.americanair.com) Deere and Company...

Select one of the following companies (or any company of your choosing), and use the Internet to explore its most recent annual report. American Airlines (www.americanair.com) Pizza Hut...

Select one of the following companies (or any company of your choosing) and use the Internet to explore the companys most recent annual report. American Airlines www.aa.com Deere and Company...

Job order and process cost system job order cost system involves batch-wise or job-wise accumulation of costs. On the other hand, process costing involves assigning costs to both partially and fully...

KZ Coffee Bean, Inc. (KZCB) is a processor and distributor of a variety of different blends of coffee. The company buys coffee beans from around the world; it then roasts, blends, and packages the...

Financial Statement Analysis Project Due date: see each individual item Why this project This project has three objectives: 1) to allow you to become more familiar with the financial statements and...

17.45 One aspect of sales-variance analysis involves helping management gain insight into the company's market share. Select one of the following companies (or any company you choose) and use the...

Activity 1. Given the scenario below, provide five descriptions of inquiry and five for Quantitative Research. An example of quantitative research is the survey conducted to understand the amount of...

Truro Excavating Co., owned by Raul Truro, began operations in July and completed these transactions during that first month of operations. July 1 R. Truro invested $68,600 cash in the company in...

A design point in an optimization problem consists of A vector of constants Feasible values for the control variables Feasible values for the objective function A vector of control variables

Prepare a comparative horizontal analysis of the change in each current asset account from Year 6 to Year 7. Express each change in dollars and the percentage each change represents. Comment on each...

What choices does a company have when responding to demands for social responsibility?

What are the capabilities of customer relationship management (CRM) software? How do ERP and CRM relate?

The internal rate of return method is used by Rustic Renovations Inc. in analyzing a capital expenditure proposal that involves an investment of $74,520 and annual net cash flows of $15,000 for each...

The 2015 financial statements for Growth Industries are presented below: INCOME STATEMENT, 2015 Sales $ 330,000 Costs 215,000 EBIT $ 115,000 Interest expense 23,000 Taxable income $ 92,000 Taxes (at...

CSCI 2 6 7 0 Study guide

Write in Java Two words are anagrams if they contain the same letters in the same frequency. For instance, stale and least are anagrams of each other. A simple way to check this is to sort the...