Q: Explain how the cost of capital serves as a screening tool when using (a) the net present value…
A: Cost of capital: Cost of capital is the required return necessary to make a capital budgeting…
Q: How can engineers make capital-expenditure choices that are based on forecasting success?
A: As a result of this forecasting performance, engineers make capital-expenditure decisions will be…
Q: What is the Remaining Capital Value (RCV)?
A: Salvage value is defined as the remaining value of the fixed asset that is expected to be recovered…
Q: Explain several ways of defining the concept of rate of return on investment?
A: Return on investment is the tool that can be used to measure the performance of the companies. The…
Q: Apply the procedure to find the true IRR, or return on invested capital, of the mixed investment?
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: What distinguishes a capital investment from other investments?
A: Investments: It is the method by which an investor increases his value over some time for future…
Q: Explain return on invested capital (ROIC)
A: Return on invested capital is the return expressed in the form of percentage which a company or an…
Q: Evaluate how capital management pricing model may be utilised to assess the trade off between risk…
A: Introduction : In simple words, capital asset pricing model can be understood as the valuation model…
Q: what would be the purchasing power of the total return on their investment
A: Purchasing Power: Purchasing power refers to the actual power of buying the goods of services with…
Q: e average rate of return on investment,
A: Average rate of return of investment = Average net income * 100/(Initial investment-Salvage value)
Q: Define the term investment pool?
A: Answer: Investment pools are noting but an institutional entities that are pooled investment…
Q: Discuss the advantages and disadvantages of using (a) payback, (b) net present value and (c )…
A: Payback Period: It refers to the period in which the project's or investment's initial cost is…
Q: What are investment returns?
A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…
Q: How to use internal rate of return to make capital investment decisions.
A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…
Q: Explain briefly what working capital and working capital management are and what they do. Explain…
A: The financial Ratios will be calculated by taking the numerical values that are taken from the…
Q: Explain the process of Return on Invested Capital?
A: It represents the amount of return earned by all the investors. It can be calculated by dividing…
Q: Define capital intensity ratio
A: Formula to compute capital intensity ratio:
Q: What is investor-supplied capital?
A: A business might make a return on its invested capital that surpasses the cost of that capital.
Q: What are some ways that firms generate ideas for capital projects?
A: The development and ability of a company to stay successful rely on a steady stream of ideas for new…
Q: Explain Cumulative Investment Return Patterns?
A: Answer: Introduction: Cumulative return is the total amount of money that an individual has…
Q: Explain the investment pool?
A: Investment Pool: Investment Pool is the joint funds that is planned financial arrangements for a…
Q: Discuss the concept of an optimal capital structure
A: Introduction: Cost of capital is nothing but the minimum yield expected on the financial investments…
Q: Explain the optimal capital structure and the target capital structure?
A: The capital structure simply means to make long-term capital for a firm. The capital structure of a…
Q: Define Capital Market Line (CML)
A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…
Q: Relate the idea of cost of capital to the opportunity cost concept. Is the cost of capital the…
A: The total cost of financing current projects (or projects under consideration) will be the financial…
Q: Net working capital formula?
A: Net working capital is the difference between the current assets and current liabilities. It is the…
Q: Explain the risk-profitability tradeoff in working capital management.
A: Working capital management involves ensuring that the company is able to meet its short-term…
Q: What is net investment in operating capital?
A: The Net investment in operating capital is a two-part study that discusses two various types of…
Q: Explain the concept of “working capital” in finance
A: The investment decision made in financial management is classified into two categories as…
Q: Explain the relationship between the weighted average cost of capital (WACC), the maximization of…
A: Optimal capital structure of the firm explains the relationship between the weighted average cost of…
Q: How can I calculate the NPV of an investment?
A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…
Q: How to make capital investment choices based on the internal rate of return (IRR)
A: Capital investment choices based on the internal rate of return (IRR) will be explained:
Q: Critically assess, how MNEs make Investment, Capital Budgeting and Capital Structure Decisions?
A: A multinational enterprise or an MNE is an enterprise that does business in more than one country,…
Q: Realize how capital investment analysis plays a strategic function
A: This question explains about capital investment analysis plays a strategic function.
Q: What is the Return on Invested Capital?
A: Return on invested capital is calculated or determined to know the efficiency of the company on…
Q: Describe the investment analysis?
A: Investment analysis is defined as the process of evaluating an investment for income, risk, and…
Q: Define the term, the return on invested capital (RIC)?
A: All investments are made keeping focus on the expected returns that can be generated from it. The…
Q: Explain the term Return on Invested Capital?
A: The formula used to compute return on invested capital:
Q: What is the weighted average cost of capital (WACC), and how is it calculated? Kindly answer ASAP
A: WACC is the combined return demanded by both equity and debt holders.
Q: Describe the concept of rate of return based on the return on invested capital in terms of a…
A: The term ROIC is used to calculate the profitability or return on invested capital that a business…
Q: 3. Explain the relationship between the weighted average cost of capital (WACC), the maximization of…
A: The question is based on the concept of Weighted average cost of capital (WACC), maximization of…
Q: Explain Yields on Investment Annuities?
A: The question is based on the concept of calculation yield, which describes the returns to the…
Q: Calculate the internal rate of return of each investment opportunity. Daced
A: Internal Rate of Return(IRR) is one of the capital budgeting techniques used for finding the…
Q: Which of the following is a present value method of analyzing capital investment proposals? Uaverage…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Step by step
Solved in 3 steps
- The comparative balance sheets for Metlock Corporation show the following information. December 312020 2019Cash $33,500 $12,900Accounts receivable 12,400 10,000Inventory 12,100 9,000Available-for-sale debt investments –0– 3,000Buildings –0– 29,800Equipment 44,800 19,900Patents 5,000 6,300 $107,800 $90,900Allowance for doubtful accounts $3,100 $4,500Accumulated depreciation—equipment 2,000 4,500Accumulated depreciation—building –0– 6,000Accounts payable 5,000 3,000Dividends payable –0– 4,900Notes payable, short-term (nontrade) 3,000 4,100Long-term notes payable 31,000 25,000Common stock 43,000 33,000Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2. $10,000 of the long-term note payable was paid by issuing common stock.3. Cash dividends paid were $4,900.4. On January…Use the common-size financial statements found here: ommon-Size Balance Sheet 2016Cash and marketable securities $ 480 1.5 %Accounts receivable 6,030 18.2Inventory 9,540 28.8Total current assets $ 16,050 48.5 %Net property, plant, and equipment 17,020 51.5Total assets $33,070 100.0 %Accounts payable $ 7,150 21.6 %Short-term notes 6,850 20.7Total current liabilities $ 14,000 42.3 %Long-term liabilities 7,010 21.2Total liabilities $ 21,010 63.5 %Total common shareholders’ equity 12,060 36.5Total liabilities and shareholders’ equity $33,070 100.0 %Common-Size Income Statement 2016Revenues $ 30,000 100.0 %Cost of goods sold (20,050) 66.8Gross profit $ 9,950 33.2 %Operating expenses (7,960) 26.5Net operating income $ 1,990 6.6 %Interest expense (940) 3.1Earnings before taxes $ 1,050 3.5 %Income taxes (382) 1.3Net income $668 2.2 % Specifically, write up a brief narrative that responds to the following questions: a. How much cash does Patterson have on hand relative to its total…determine the working capital rom the following information Debtors $ 148000, cash balance $ 69000 bank balance $ 129000 stock of Finished goods $ 188000 & current liabilities amount to $ 645000 ans options are : -12000 -111000 121000 18000
- Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) (a)Current ratioenter the ratio rounded to 2 decimal places (b)Acid-test ratioenter the ratio rounded to 2 decimal places…Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) Inventory turnoverenter the number rounded to 2 decimal places Days in inventoryenter the number of days rounded to 0 decimal…Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83)
- Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) (a)Current ratioenter the ratio rounded to 2 decimal placesSwifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) Inventory turnoverenter the number rounded to 2 decimal places Days in inventoryenter the number of days rounded to 0 decimal…Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) (i)Earnings per share$enter a dollar amount rounded to 2 decimal places (j)Payout ratioenter percentages rounded to 0 decimal…
- Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) Asset turnoverenter the number rounded to 2 decimal places (g)Return on assetsenter percentages rounded to 0 decimal places…Mvula Limited Statement of Financial Position as at: 28 February 2021 ASSETS Non-current assets Fixed/tangible assets Financial assets Fixed deposit Current assets Inventory Trade and other receivables Cash and cash equivalents Fixed deposit TOTAL ASSETS 4 320 350 EQUITY AND LIABILITIES Bay Holdings Limited: 30 June 2021.Required:Statement of financial position as at: 30 June 2021InformationBALANCE SHEET ACCOUNTSOrdinary share capital 2 648 000Retained income (1 Jul 2020) 490 000Shareholders for dividends 280 000Fixed deposit 60 000Mortgage bond 336 000Fixed/tangible assets (Carrying value) 4 021 000Debtors control 45 000Creditors…Comparative balance sheets for Hamilton Company are presented below. Hamilton Company Comparative Balance Sheet Decemebr 31 Assets 2017 2016 Cash 78000 12000 Accoutns Receivable 93000 76000 Inventory 180000 189000 Land 75000 100000 Equipemnt 250000 210000 Accu Dep - Equipment (66,000) (42,000) Total 610000 545000 Liability and Equity Accounts Payable 34000 47000 Bonds Payable 150000 200000 Common Stock ($1 Par ) 214000 164000 Retained Earnings 212000 134000 Total 610000 545000 Additional information: 1. Net income for 2017 was $134000 2. Cash dividends of $65,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.…