It is April 2018 and Mark is a novice investor who wants to decide between purchasing shares in EagleCorp or Myna Bird Inc. In fiscal year 2017, EagleCorp's return on invested capital (ROIC) was 15 percent, and its cost of capital was 12 percent. During the same period, Myna Bird Inc.'s ROIC was 22 percent and its cost of capital was 25 percent. What does this information tell Mark? Question 1 options: Myna Bird Inc. is more likely to create value while EagleCorp is more likely to destroy value. EagleCorp is more likely to create value while Myna Bird Inc. is more likely to destroy value. Both Myna Bird Inc. and EagleCorp are likely to create value. Neither Myna Bird Inc. nor EagleCorp are likely to create value.

Answers

Answer 1

Answer:

EagleCorp is more likely to create value while Myna Bird Inc. is more likely to destroy value.

It is April 2018 and Mark is a novice investor who wants to decide between purchasing shares in EagleCorp or Myna Bird Inc. In the fiscal year 2017, EagleCorp's return on invested capital (ROIC) was 15 percent, and its cost of capital was 12 percent. During the same period, Myna Bird Inc.'s ROIC was 22 percent and its cost of capital was 25 percent. Here EagleCorp is more likely to create value while Myna Bird Inc. is more likely to destroy value.


Related Questions

A lease provides that a retail tenant pays $900 minimum rent per month plus 3% of the gross sales in excess of $200,000 per year. If the tenant paid a total rent of $20,520 last year, what was the gross sales volume

Answers

Answer:

45,650

Explanation:

The gross sales volume was $45,650.

What was the gross sales volume?

The entire quantity of incoming income throughout a specific time frame.

Gross sales are discussed with the grand overall of all income transactions over a given time period. this doesn't encompass the cost of income or deductions

sales volume refers to the number of units your corporation sells at some point of a selected reporting duration. this era may be a month, a quarter, or a year relying on what degree of sales extent you are in search of to research. buyers often study sales volume to assess the fitness of a developing or contracting business enterprise.

To calculate gross sales, upload the total income revenue for a specified time period—monthly, quarterly, or annually.

The minimum rent per month is $900.

gross sale percentage =  3%

The tenant paid a total rent of $20,520 last year.

The gross sales volume = $45,650.

Learn more about the gross sale here:-https://brainly.com/question/4177260

#SPJ2

Leo's Lawncare purchased equipment on January 1. The cost was $15,000, and the equipment had a residual value [salvage value] of $5,000. The equipment was given a useful life of 10 years. After the end of two years, it was determined that the equipment would be obsolete in 5 more years and the residual value would still be $5,000. What will be the depreciation under the straight-line method to the nearest dollar be for the third year

Answers

Answer:

$1,600

Explanation:

The computation of the depreciation expense for the third year is shown below:

The yearly depreciation expense is

= ($15,000 - $5,000) ÷ $10

= $1,000

For two years is should be

= $1,000 × 2

= $2,000

Now the depreciation expense for the third year is

= ($15,000 - $2,000 - $5,000) ÷  5 years

=  $1,600

ASAP PLEASEEE!!! If the price level were to rise from 160 to 200, in what direction and by how much would the value of a dollar change?

Answers

Answer:

- Downward direction

- The change in dollar value is 0.00125

Explanation:

Given

[tex]P_1 = 160[/tex]

[tex]P_2 = 200[/tex]

Required

Direction and value of dollar change

Value is calculated using

[tex]V = \frac{1}{P}[/tex]

When [tex]P_1 = 160[/tex], the value is:

[tex]V_1 = \frac{1}{160}[/tex]

[tex]V_1 = 0.00625[/tex]

When [tex]P_2 = 200[/tex], the value is:

[tex]V_2 = \frac{1}{200}[/tex]

[tex]V_2 = 0.005[/tex]

So, we have:

[tex]V_1 = 0.00625[/tex]

[tex]V_2 = 0.005[/tex]

Notice that [tex]V_1 > V_2[/tex]

i.e. the initial value is greater than the new value

Hence, the value of dollar moves down

The change in value is:

[tex]\triangle V = |V_2 - V_1|[/tex]

[tex]\triangle V = |0.005 - 0.00625|[/tex]

[tex]\triangle V = |- 0.00125|[/tex]

Remove absolute sign

[tex]\triangle V = 0.00125[/tex]

The change in dollar value is 0.00125

In Sam's greenhouse operation, labor is the only short term variable input. After completing a cost analysis, if the marginal product of labor is the same for each unit of labor, this will imply that
A. the average product of labor is always equal to the marginal product of labor.
B. the average product of labor is always greater that the marginal product of labor.
C. the average product of labor is always less than the marginal product of labor.
D. as more labor inputs are used, the average product of labor inputs will fall.

Answers

Answer:

i think the answer is C. the average product of labor is always less than the marginal product of labor.

Explanation:

:)

Which of these can lower the amount of monthly payments on a mortgage?
Insurance
Down payment
Property taxes
Collateral

Answers

Answer:

I think that the answer is collateral

Collateral is the item that can lower the amount of monthly payments on a mortgage.

What is collateral?

Collateral refers to item owned by a borrower, which is used as a guarantee that loan taken will be repaid.  It is an asset that a borrower offers to a lender as a promise that the payment of the loan will be repaid as agreed.

It is important to note that collateral is used to secure loan incase a borrow does not pay back the loan taken.

Hence, collateral is the one that can lower the amount of monthly payments on a mortgage.

Learn more about collateral here : https://brainly.com/question/7671058

Which of the following is the best example of the use of automation?: (A) A garment sewn by an operator at a sewing machine. (B) A letter written by a secretary using a computer. (C) An automobile painted by a computer-directed robot on an assembly line. (D) A medical assistant drawing blood from a patient's arm.

Answers

Answer:

c

Explanation:

no humans

Ludwig borrowed $700,000 for a
period of 2 years. His interest rate is
10%. How much interest will
Ludwig pay in all?
$[?]

Answers

Answer:

$140000

Explanation:

Principle = $700000

Rate = 10%

Time = 2 years

Simple interest = P x R x T / 100

Simple interest = 700000 x 10 x 2 / 100

Simple interest = 70000 x 2

Simple interest = $140000

Historically, investments in the ________ have experienced the greatest returns.

Bond market
Real estate market
Stock market
Money market

Answers

Answer:

C. Stock market.

Explanation:

Stock market have experienced the greatest returns, even tho they are long term. ♥

Which of these correctly describes the statute of limitations as it applies to real estate? Unset starred question A wronged party can initiate a court action at any time after closing but before reselling the property. The buyer has the time between the inspection and closing to initiate a court action against the seller. There’s a time limit for a wronged party (buyer or seller) to initiate a court action. The seller has a limited time after closing to disclose any known defects with the property.

Answers

Answer:

There’s a time limit for a wronged party (buyer or seller) to initiate a court action.

Explanation:

The best statement that correctly describes the statute of limitations as it applies to real estate is the "There’s a time limit for a wronged party (buyer or seller) to initiate a court action."

This is evident in the fact that depending on the bone of contention or the main issues, there are certain but limited times required for the wronged party to go through litigation to resolve the issue.

For example in California, United States, there are Six Primary Statutes of Limitation apply in Real Estate Sales Transactions and Litigation and each has limited time with 4years of Limitations for Breach of Contract, and 2 years for Limitations for Actions Against a Real Estate Broker Agent, etc.

Abba, Inc. is considering dropping a product line. During the prior year, the line had sales of $207,000 and a contribution margin of $124,000. Fixed expenses consist of: Salaries $60,000 Rent 50,000 Advertising 20,000 Administrative 35,000 Total fixed expenses $165,000 The product line manager's $60,000 salary is avoidable as is the $20,000 of advertising. Of the administrative expenses, $10,000 is avoidable. The rest are general allocated expenses that will not change if the product is dropped. The rent expense is allocated to product lines based on sales and represents a share of the total cost for the building. If this product line is dropped overall net operating income will:

Answers

Answer:

Overall net income will decrease by $34,000.

Explanation:

Calculation to determine net operating income

Using this formula formula

Net operating income=Contribution margin -Avoidable costs

Where,

Contribution margin =$124,000

Avoidable costs= Salaries $60,000

+Advertising $20,000+Administrative expenses $10,000

Let plug in the formula

Net operating income=$124,000-($60,000+$20,000+$10,000)

Net operating income=$124,000-$90,000

Net operating income=$34,000 Decrease

Therefore If this product line is dropped overall net operating income will:decrease by $34,000

Fredrick purchased a property worth $150,000 on mortgage. He paid $30,000 as a down payment on this property. However, a recent slump in real estate prices forced Fredrick to sell the property for $115,000 only 2 months later. This sale is termed a(n): Group of answer choices

Answers

Answer:

Real estate short sale

Explanation:

Real estate is defined as a piece of land and any attached property that is constructed on it.

In real estate business a real estate short sale occurs when the person that owns a property decides to sell the property at a price that is less than the amount on the mortgage.

This usually occurs as a result of financial distress of the owner.

In the given scenario the property has a mortgage value of $150,000 and down payment of $30,000 has been made.

The mortgage amount is now $150,000 - $30,000 = $120,000

However they now sell the property for $115,000 which is less than the remaining mortgage value of $120,000.

This is and example of real estate short sale.

Game theory is Group of answer choices The study of price-fixing and collusion. The study of decision making in situations where strategic interaction occurs between rivals. An explanation of how oligopolists become monopolists. Practiced by perfectly competitive firms.

Answers

Answer:

The study of decision making in situations where strategic interaction occurs between rivals.

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Game theory is usually practiced by firms in an oligopoly

An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.

Oligopolies are characterised by:

price setting firms

product differentiation

profit maximisation

high barriers to entry or exit of firms

downward sloping demand curve

The comparative balance sheets for Swifty Company show these changes in noncash current asset accounts: accounts receivable decreased $80,000, prepaid expenses increased $28,500, and inventories increased $43,500. Compute net cash provided by operating activities using the indirect method, assuming that net income is $228,900.

Answers

Answer:

$236,900

Explanation:

Computation for net cash provided by operating activities using the indirect method

Net income $228,900

Add : Account receivables $80,000

Less: Prepaid expenses ($28,500)

Less :Inventories ($43,500)

NET CASH by OPERATING ACTIVITIES $236,900

Therefore net cash provided by operating activities using the indirect method is $236,900

Jay Bird is a partner in Soundview Partnership. The adjusted basis of his interest is $19,000, of which $15,000 represents his share of partnership liabilities. Jay's share of the partnership's unrealized receivables is $6,000. The partnership has no substantially appreciated inventory items. Jay sold his partnership interest for $28,000 cash plus $15,000 of his liability relief. What is the amount and character of his gain

Answers

Answer:

Ordinary income of $6,000; Capital gain of $18,000

Explanation:

Calculation to determine the amount and character of his gain

First step is to calculate the The total gain on the sale of his partnership

Using this formula

Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )

Let plug in the formula

Total gain on the sale of his partnership=$28,000+$15,000+$19,000

Total gain on the sale of his partnership=$24,000

Now let determine the amount and character of his gain

The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.

Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000

Skysong Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $400000 $600000 Annual net income 18000 34000 Net annual cash inflow 96000 119000 Estimated useful life 5 years 6 years Salvage value 0 0 The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.89 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 The annual rate of return for Project Soup is

Answers

Answer:

20%

Explanation:

Calculation to determine The annual rate of return for Project Soup is

Annual rate of return = [(Current Value of Investment - Initial Investment for one year )/Initial Investment for one year )]*100

Let plug in the formula

Annual rate of return= (($96000 - $80000) / $80000) * 100

Annual rate of return= ($16000 / $80000) *100

Annual rate of return= 20%

Workings:

Calculation to determine the Initial Investment for one year

Initial Investment for one year = $400000 / 5 year

Initial Investment for one year = $80000

Therefore The annual rate of return for Project Soup is 20%

pls help
Your lifestyle desires should be a big part of choosing your career.

Is this statement true or false?


true

false

Answers

Answer:

True

Explanation:

You should incorporate your life desires into choosing a career choice because if you are not happy with your job or you don't feel fulfilled with what you are doing then you are only harming yourself mentally and sometimes physically by continuing to do something that doesn't fit with your desires.

Whenever Josh goes to his favorite restaurant, he wants to buy tiramisu, his favorite dessert. Despite the fact that he would enjoy the flavor of the tiramisu the same amount every time, Josh only buys it when others are having dessert and never buys it if he would be the only one having dessert. Behavioral economists would say that Josh's decision is affected by confirmation biases. framing effects. the self-serving bias. the availability heuristic.

Answers

Answer:

Framing effects.

Explanation:

Framing effect in psychology is the cognitive bias whereby an individual makes decisions based more on the information presented than on one's own choice. In other words, when someone makes a decision that is influenced more by the effects of the information on others than on one's own opinions.

In the given scenario, Josh's decision to have tiramisu only when others are having dessert and not if he would be the only one having dessert is affected by the framing effect. This is because his decision is influenced by the way others behave rather than his desire to eat even his favorite dessert.

Thus, the correct answer is the framing effect.

which of the following strategies for conflict managment assumes that many conflicts are win-win conflicts

Answers

Answer: resolving

Explanation:

Conflict resolution refers to the process whereby two or more parties find a peaceful solution to a conflict. There are several ways to resolve conflict such as arbitration, negotiation, and mediation.

Resolving of a conflict is a win-win situation for both parties. This is because both parties eventually have a satisfactory outcome.

Mark Green is considering buying a new Honda Accord. The purchase price of the car is $21,000 but Mark has a trade-in worth $4500. Mark needs a loan to buy the car and knows that his local bank requires him to put down 10% of the purchase price after the value of the trade-in is considered. Mark also knows that bank will charge 8% for the loan and require monthly payments over the next 4 years. What is the minimum down payment that Mark can make

Answers

Answer:

the minimum down payment that Mark can make is $1,650

Explanation:

The computation of the  minimum down payment that Mark can make is given below:

Purchase price $21,000  

Less: Trade In -$4,500

Net price $16,500

So, the down payment needed should be

= 10% of $16,500

= $1,650

Hence, the minimum down payment that Mark can make is $1,650

write the importance of profession education​

Answers

Answer:

The educational program which helps to acquire necessary theoretical knowledge and practical skills to develop a good career is called professional education. It is also called career education.

1; Choose a business or an industry that is considered as a perfect market and explain which characteristics of a perfect market are not met by this business or industry.​

Answers

Answer:

hey what kind of watch is that in your profile pic

When interest is accrued on a note payable, but not paid, the A. Interest Expense account is increased; the Interest Payable account is decreased. B. Notes Payable account is increased; the Interest Payable account is increased. C. Interest Expense account is increased; the Interest Payable account is increased. D. Interest Expense account is decreased; the Interest Payable account is increased.

Answers

Answer:

C. Interest Expense account is increased; the Interest Payable account is increased.

Explanation:

A secured interest can be defined as a legal right granted by a borrower to a lender (creditor) over a collateral (the borrower's property) which permits or allow the lender to have a right to possess the property as soon as the lender defaults in making payment. The payment which is expected to be made by the borrower of a mortgage loan is considered a secured obligation because it is a lien or an enforceable legal claim.

When interest is accrued on a note payable, but not paid, the Interest Expense account is increased; the Interest Payable account is increased.

Al hires Bob to move his furniture to his new house. On the day of the move, Bob does not feel like moving furniture, so he asks his friend Chuck to move the furniture. Chuck decides to leave before completing the move in order to watch a football game on TV. Al has to delay his move and hire another mover at a higher price. Al wants to sue Bob to recover for his damages. Given these facts, Al will most likely:

Answers

Answer: Win, because Bob is still liable to Al.

Explanation:

Accepting to do a job must come with commitment on the side of the servicer. It is unjust to accept a job without making much effort or input to see it carried out. Some businesses do this especially when a bigger offer comes their way and these puts a bad name to their organization as the failed client will have no good thing to say about them, when the cases goes like this, the client who was failed raises the issue to court and would win since he has already engaged the services, this is the tail between Bob and Al.

16. The ape ……………………. from branch to branch in search of food.
1) lopes 2) swings 3) swoops 4) leaps

Answers

Answer: swings

Explanation:

Answer:

swings

Explanation:

The United States Food and Drug Administration requires manufacturers of processed foods to publish nutrition information on the packaging at a considerable cost to the firms. How does this requirement affect economic​ efficiency? A. It moves the market toward economic efficiency because the additional information represents a positive externality that the FDA is forcing firms to internalize. B. It moves the market toward economic efficiency by reducing the market failure caused by a lack of​ information, enabling consumers to make better informed decisions regarding nutrition. C. It moves the market away from economic efficiency because the additional cost of​ labeling, which is not accounted for in the market​ price, creates a market failure. D. It moves the market away from economic efficiency because the additional cost of labeling adds little value but raises the price of food above marginal cost.

Answers

Answer:

A. It moves the market toward economic efficiency because the additional information represents a positive externality that the FDA is forcing firms to internalize.

Explanation:

The US food and drug administration needs to follow some standard procedure such as the placing of labels and identifying marks on the products so as to provide additional information to the consumers and clients. This helps both consumers and the company by setting up goodwill and enhances their productivity.

Machvile Corporation, a robotics company, decides to acquire Chancera Inc., a start-up company that operates within the same industry. To better assess its decision, the management of Machvile Corporation needs to find out the value of Chancera Inc.'s total assets. The management has information regarding Chancera Inc.'s liabilities and stockholders' equity. In this scenario, the management should most likely use the _____ to get the required information.

Answers

Answer: Accounting equation

Explanation:

The accounting equation is a proposition or formula that accesses a company's assets by summing up it's equity and liabilities. It means that the equity of a company would equal it's assets minus liabilities.

Machvile Corporation can access properly the worth of Chancera Inc.'s by using the Accounting equation, weighing their assets and leaving out their liabilities.

Wolfe Company purchased a truck for $62,000, with an estimated useful life of 8 years and a salvage value of $10,000. The company uses the double-declining-balance method of depreciation; however, after year 3 they switch to the straight-line method. There is no change to the estimated useful life or salvage value. What is the accumulated depreciation balance at the end of year 5 (round to the nearest dollar)

Answers

Answer:

$42306

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2/8

Depreciation expense in year 1 = 2/8 x 62,000 = 15500

Book value at the beginning of year 2 = 62,000 - 15500 = 46500

Depreciation expense in year 3 = 2/8 x 46500 = 11625

Book value at the beginning of year 3 =46500 - 11625 = 34,875

Depreciation expense in year 3 =34,875 x 2/8 = 8718.75

Book value at the beginning of year 4 = 34,875 - 8718.75 = 26156.25

Straight line depreciation expense = (book value of asset - Salvage value) / useful life

26156.25 - 10,000 / 5 = 16156.25 / 5 = 3231.25

Depreciation expense for the remaining 2 years =  3231.25 x 2 = 6462,50

total depreciation = sum of year 1 to 5 depreciation = 6462,50 + 15500 + 11625 + 8718.75 = $42306

When Henry first began his real estate career, he focused on residential properties. As he gained more experience, he found that he really enjoyed helping business owners find warehouses for their products, or properties where they could conduct manufacturing activities. Of the primary categories of real estate, what types of properties does Henry handle

Answers

Answer:

I think it is wharehosues

Explanation:

wharehosues

When money is used in a trade instead of the direct exchange of goods, it acts as a __________.

Answers

Answer:

bartar system

Explanation:

Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is distinguishable from gift economies in many ways; one of them is that the reciprocal exchange is immediate and not delayed in time.

When money is used in a trade instead of the direct exchange of goods, it acts as a Barter system.

What is Barter System?

The Barter System is the name given to a transaction in which two or more parties exchange equal-value products and services without the use of money.

Even though it is one of the oldest forms of commerce, people and businesses still use it to order products and services when they do not have enough cash or money to make purchases. A form of exchange called barter allows for the direct exchange of one commodity or service for another without the need of a medium of exchange like money. It differs from gift economies in a number of ways, one of which is that the reciprocal transaction takes place right away rather than later.

Learn more about Barter system here:

https://brainly.com/question/31356996

#SPJ3

An investor wishes to construct a portfolio consisting of a 70 percent allocation to a stock index and a 30 percent allocation to a risk-free asset. The return on the risk-free asset is 4.5 percent, and the expected return on the stock index is 12 percent. The standard deviation of returns on the stock index is 6 percent. Calculate the expected standard deviation of the portfolio.

Answers

Answer:

the standard deviation is 4.2%

Explanation:

The computation of the standard deviation of the portfolio is given below:

expected standard deviation of the portfolio is

= Allocation percentage of stock index × standard deviation of returns on the stock index

= 0.70 × 6%

= 4.2%

Hence, the standard deviation is 4.2%

Other Questions
A ball is thrown upward from the edge of a cliff with an initial velocity of 6 m/s. (a) How fast is it moving 0.5 s later? In what direction? (b) How fast is it moving 2 s later? In what direction? PLEASE HELPME ASAP I WILL GIVE BRAINLIST! Write a program that takes the account's present value, monthly interest rate, and the number of months that the money will be left in the account as three inputs from the user. The program should pass these values to a function thatreturns the future value of the account, after the specified number of months. The program should print the account's future value. 0.25(4f-3)=0.005(10f-9)Simplify the following Which of the following food borne illness has a preventative vaccine A. E.coliB.norovirusC. Hep. AD. Shigella What is 9,000,000 + 8,000 + 90,000,000 + 100 + 2 + 90,000 + 90 in standard form? A manufacturer determines that the cost of making a computer component is $4.131313. Write the repeating decimal cost as a fraction and as a mixed number. The cost written as a fraction is A girl walks 55 m downhill in 3.2 s. What is her average velocity? Mr. Thomas invested an amount of 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be 3508, what was the amount invested in Scheme B? how many moles of oxygen are present in 16 g of oxygen gas Hi! i need some help with this question, you don't need to help with the 2 parts, just any 1. Thank you!!y varies is directly as 3x 4, and y = 33 when x = 5 Find:a) y when x = 2b) x when y = 15 The blue car was rusty but still quiet fast Help with question b please If I had known you needed the book, I'd have brought it with me.In the above sentence, if isO a coordinating conjunctionO a prepositionO a subordinatorO an adjectiveo none of these Which point is collinear to the point (2, 1)?OA) (1,0)OB) (3,2)OC) (4,1)OD (1,3) Match each type of context clue with the correct sentence. The unknown word is underlined.Drag each tile to the correct box.Tilesdefinition clueexample cluesynonym clueantonym cluePairsConstellations, including Aquarius and Orion,are easiest to view on a clear, cloudless night.arrowBoth As Zander walked through the forest, therewas a sense of foreboding, unease, and worry.arrowBoth While Audrey had a grievance with her boss,she also had praise and appreciation.arrowBoth A bibliography is a list of texts referred to byan author. Which ordered pair can be plotted together with these four points, so the resulting graph still represents a function?(2, -1)(2, -2)(-2, 2)(-1, 2) Much like the Japanese during World War II, Americans are currently subjected to greater scrutiny and discrimination. a. African b. Asianc Native d. Muslim Find the value of x. What is the domain of the function shown on the graph?