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

Author Question: Using residual income as a measure of performance rather than return on investment promotes goal ... (Read 134 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Mar 6, 2021

Question 1

Times Corporation, whose tax rate is 30%, has two sources of funds: long-term debt with a market value of $6,500,000 and an interest rate of 7%, and equity capital with a market value of $18,000,000 and a cost of equity of 11%. Times Corporation's after-tax cost of debt is ________.
◦ 9.38%
◦ 4.90%
◦ 7.00%
◦ 11.00%

Question 2

Using residual income as a measure of performance rather than return on investment promotes goal congruence because residual income ________.
◦ places importance on the reduction of underperforming assets
◦ calculates a percentage return rather than an absolute return
◦ concentrates on maximizing an absolute amount of dollars
◦ concentrates on maximizing the return on sales
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 littleanan on Mar 6, 2021

jgranad15

  • Sr. Member
  • ****
  • Posts: 345
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 32% of students answer this correctly


littleanan

  • Member
  • Posts: 575
Reply 2 on: Mar 6, 2021
Excellent

dantucker

  • Member
  • Posts: 346
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Example of an employee performance evaluation form Cont Example of an employee performance evaluation form Cont
A goniometer is used to measure range of motion of the patient’s arm. A goniometer is used to measure range of motion of the patient’s arm.
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
Relationship between Income Inequality and the Desired Tax Rate Relationship between Income Inequality and the Desired Tax Rate
Income per Capita versus Total Fertility Rate Income per Capita versus Total Fertility Rate
Determ ine the measure of angle x Determ ine the measure of angle x
Video: Glucagon (glycogenolysis and gluconeogenesis)

For a complete list of videos, visit our video library