This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Springfield Corporation, whose tax rate is 30%, has two sources of funds: long-term debt with a ... (Read 148 times)

cabate

  • Hero Member
  • *****
  • Posts: 537
on: Mar 6, 2021

Question 1

Return on investment can be increased by ________.
◦ increasing current assets
◦ increasing return on sales
◦ decreasing revenues
◦ increasing the debt portion of the capital

Question 2

Springfield Corporation, whose tax rate is 30%, has two sources of funds: long-term debt with a market value of $8,400,000 and an interest rate of 8%, and equity capital with a market value of $14,000,000 and a cost of equity of 13%. Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:

​Total AssetsCurrent LiabilitiesOperating Income
Blue Div.$9,500,000$3,100,000$1,059,000
Gold Div.$11,000,000$2,200,000 $1,200,000
What is Economic Value Added (EVA®) for the Blue Division? (Round intermediary calculations to four decimal places.)
◦ -$86,580
◦ $86,580
◦ $404,280
◦ -$230,550
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by cabate on Mar 6, 2021

miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


cabate

  • Member
  • Posts: 537
Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

sultana.d

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Effects of growth rate on development. Effects of growth rate on development.
The Role of Summation in Long-Term Potentiation The Role of Summation in Long-Term Potentiation
How Long Does Poverty Last? How Long Does Poverty Last?
Homeschooling has come a long way. These children are performing in a musical at the annual ... Homeschooling has come a long way. These children are performing in a musical at the annual ...
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Outgroup role in relative rate test Outgroup role in relative rate test
Video: Fetal development - Weeks 9 to 38

For a complete list of videos, visit our video library