Question 1 Accounting asset values often differ from economic asset

ECONOMICS At the end of 2011 Home Depot's total capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Give your answer in millions rounded to 2 decimal places.)

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Describe the challenge for businesses surrounding return-on-investment calculations and employee recruitment and retention.

What process does the net present value method use to help management determine whether a project is acceptable to a company? Options : A. It discounts net cash flows to their present value and then compares that value to the capital outlay required by the project.B. It determines the interest rate that will cause the present value of the capital expenditure to equal the present value of the expected net cash flows.C. It divides the present value of net cash flows by the initial investment to determine the profitability index of the project.D. It identifies the time period required to recover the cost of the capital investment from the net annual cash flow produced by the project.

Need answer ASAP... Income retained in the firm is an example of ____ accounts   a. asset b. profit c. liability d. owner’s equity

Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true.  Zero economic profit implies zero accounting profit.

QUESTION TWO (2) Assume you are managing a one-year project and have listed the project earned management value as below. Note that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion. PV = $25,000 EV = $22,000 AC = $27,000 BAC = $122,500 Review the project and answer the following to find your project status. a. Calculate the following for the project. i. Cost variance ii. Schedule variance iii. Cost performance index (CPI) iv. Schedule performance index (SPI) b. Discuss the project status whether it is ahead of schedule or behind schedule and whether it is under budget or over budget. c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? d. Use the SPI to estimate how long it will take to finish this project.

The information below has been extracted from the books of the Shelley Company. Which of the following represents Shelley’s current ratio? Solve, a. 0.76 b. 1.48 c. 2.05 d. 2.51.

4 57806310882... Questions 1. Discuss briefly about: 1.1. The importance of financial management in construction project management 1.2.The purpose of investment appraisal in construction industry •..

Prepare a segmented income statement for Mike's Auto Center using the 2018 Actual results. Of the fixed expenses, the following can be traced to specific segments and comment on any areas that require further investigation. Oil Brakes Tires Rent 20% 30% 30% Utilities 10% 25% 35% Depreciation 10% 25% 25% Maintenance 5% 30% 30% Amounts not assigned to segments are common expenses of the business

Which of the following best defines retained earnings?   a. They are interest paid to creditors.   b. They are profits not paid out to shareholders.   c. They are the amount of revenues a corporation receives for the sale of its products, minus its costs of production, as measured by its accountants.   d. They are the amounts paid out as dividends.

The ........of the business should show the business net worth covering all of the main financial liabilities, assets and owner equity at a particular point time. A-invoice B-balance sheet C-quotation D-income statement

The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $15.50, all of which was reinvested in the company. The firm's expected ROE for the next five years is 19% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6, the firm's ROE on new investments is expected to fall to 14%, and the company is expected to start paying out 35% of its earnings in cash dividends, which it will continue to do forever after. DEQS's market capitalization rate is 22% per year. a. What is your estimate of DEQS's intrinsic value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) ✔Answer is complete and correct. $ Intrinsic value b. Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year? (Round your dollar value to 2 decimal places.) Price…

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Calculate profit given that corporate tax is $1000, dividend is $3300 and the retained earnings is $600

Match the systems thinking terms to their descriptions. Note that not every description will be used.  Terms:  Inflows, Feedback loop, Flows, Arrows, Negative feedback loop, Stock, Stock and flows diagram, Clouds, Positive feedback loop, Outflows Descriptions:  Decreases stock/accumulation Actions or activities that increase/decrease accumulations over time Indicates gaps in documentation of the system Systems thinking technique that helps explain how a system works Consequences, intended or unintended, of an activity in a system  Consequences that keep a system stable or prevent change from happening Increases stock/accumulation An accumulation that can be measured; usually a population Factors associated with an accumulation/population Describes characteristics of accumulation/population Used to indicate the relationships between stocks and flows Consequences that reinforce change in a system  Boundaries of the system map

Which of the following financial ratios provides insight into a firm’s solvency over the short term by indicating its ability to cover current liabilities? (a) Acid-test ratio (b) Quick ratio (c) Current ratio (d) Net profit ratio?

(1) Common Equity Tier 1 Risk-Based Ratio Zone 1. Well capitalized 6.5% or above and 8% or above 2. Adequately capitalized 3. Undercapitalized 4. Significantly 45% or above and 6% or above Under 4.5% undercapitalized Under 3% Under 6% or Under 6% 5. Critically undercapitalized Tangible equity/Total assets 52% (2) Tier I Risk-Based Ratin or undercapitalized. well capitalized. adequately capitalized. 6 Total Risk-Based Ratio and 10% or above of and 8% or above and 4% or above Under 8% and 5% or above Tier1 Leverage Ratio or or Under 8% of Under 4% Under 4% Capital Directive/Other and Not subject to a capital directive to meet a specific level for any capital measure and Does not meet the definition of well capitalized A bank has CET 1 capital of $50 million, Tier I capital of $90 million and Tier II capital of $70 million. The bank has risk-weighted assets of $2,017.6 million. Ba capital ratio, this bank is: significantly undercapitalized.

The best economic use of excess cash generated by a firm over the long term would be to?A. reinvest by the firm in its core businessB. pay dividends and/or buy back stockC. acquire other companiesD. none of the above   typed and correctly please. I ll r

100-There are multiple stages in a business life cycle. Sometimes they generate higher return while sometimes they face losses due to some unexpected events like COVID-19. Accounting literature comes forward in support of business in the form of transferring amounts across the years to fil this gap for the moment. There is no doubt that this will be showing a very glowing picture from the business side but it can also be a. Misleading as the investor thinks very positive which is not true b. None of the options c. Better as the investor is expecting a positive return in the future perspective d. Leading to higher share price in the open market resulting in good corporate image