Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: A corporation has provided the data:

Return on investment (ROI) 15 percent

Sales $120,000

Average operating assets $60,000

Minimum required rate of return 12 percent

Margin on sales 7.5 percent

The corporation's residual income is:

[A]    $2,700

[B]    $3,600

[C]    $1,800

[D]    $5,400

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916954

Have any Question? 


Related Questions in Basic Finance

1 why should a firms ability to use tax credit affect its

1). Why should a firm's ability to use tax credit affect its capital structure? 2). Briefly describe our three-step approach to the dividend decision. 3). (a). Describe the difference between secured and unsecured debt. ...

Commercial paper yield curve how do you think the shape of

Commercial Paper Yield Curve: How do you think the shape of the yield curve for commercial paper and other money market instruments compares to the yield curve for Treasury securities? Explain your logic.

Pure expectations theory assume there is a sudden

Pure Expectations Theory: Assume there is a sudden expectation of lower interest rates in the future. What would be the effect on the shape of the yield curve? Explain.

What are derivatives define forward futures and option

What are derivatives? Define forward, futures, and option agreements. What are the underlying instruments in these agreements?

Impact of expected inflation how might expectations of

Impact of Expected Inflation: How might expectations of higher oil prices affect the demand for loanable funds, the supply of loanable funds, and interest rates in the United States? Will the interest rates of other coun ...

What are cash inflows and outflows what are the

What are cash inflows and outflows? What are the formulas?

You are running a hot internet company analysts predict

You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 6% per year and c ...

Assume the effective 6-month interest rate is 2 and the

Assume the effective 6-month interest rate is 2% and the S&R 6-month forward price is $1020 The premiums for S&R options with 6 months to expiration are as follows: Strike call put $950 $120.405 $51.777 1000 93.809 74.20 ...

Lasa npv sensitivity risk bias and ethics in capital

LASA: NPV, Sensitivity, Risk, Bias and Ethics in Capital Budgeting Investment projects should never be selected through purely mechanical processes. Managers should ask questions about the positive net present value (NPV ...

What are the main asset characteristics that pension funds

What are the main asset characteristics that pension funds will consider when selecting their investment portfolios?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate