Speed Boats Inc has two divisions, Economy and Elite The tax rate for the company is 40 The following information pertains to the 2011 year a What is the ROI for each division b What is the EVA for each division c What other ratio could be used to evaluate each division Economy Elite Revenues $3,80...

The Answer is in the image, click to view ...

Speed Boats Inc. has two divisions, Economy and Elite. The tax rate for the company is 40%.

Question:

Speed Boats Inc. has two divisions, Economy and Elite. The tax rate for the company is 40%. The following information pertains to the 2011 year:

image text in transcribed

a. What is the ROI for each division?

b. What is the EVA for each division?

c. What other ratio could be used to evaluate each division?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting For Managers Interpreting Accounting Information For Decision Making

ISBN: 9781118037966

1st Canadian Edition

Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann

See More Books

Question Posted: May 31, 2024 03:08 AM

See More Questions

A company owns a piece of land and they are considering taking up a new 5-year project on it or selling it now for $50,000. The project would require to buy a machine for $600,000 that could be used...
James has the following information regarding his use of direct labor in a recent period: Total direct labor hours worked (AQ) 30,000 Total units manufactured 8,000 Real hourly wage rate (AP) $16...
Information Management Assignment 2 Assessment Weighting: 15% of the course total Total marks = 50 marks Due date: 26 th April, 2023 group of 4 to 6 students submissions. Write each students...
Cost-Volume-Profit (CVP) analysis can be used to determine the effect of changes in costs and volumes on a company's net profits. This project assignment assumes that you are newly hired as an...
How many standard errors from the mean are the following? What are the corresponding p values for a two-tailed test? 1. The support for the null hypothesis is less than the maximum by 2. 2. The...
In the Cori cycle, the lactate product of glycolysis in muscle is transformed back into glucose by the liver. (a) List the enzymes involved in the lactate ( glucose pathway. (b) What is the net...
16. Suppose that the yield curve is given by y(t) = 0.10 0.07e 0.12t , and that the short-term interest rate process is dr(t) = ((t) 0.15r(t)) + 0.01dZ. Compute the calibrated Hull-White tree for 5...
Income statements for Thompson Company for 2011 and 2012 follow. Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2011 and 2012. b....
2-4. Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per share. Sales $600,000 Shares outstanding 100,000 Cost of goods sold...
Elsie Vinton Laboratories is evaluating the purchase of five new MRI machines for its labs at various locations in Vancouver for $$9,000,000,$ which will increase the company's before-tax profit by...
A farm equipment company, with three divisions, shows the following results for 2011: The companys desired rate of return is 15%. a. Compute each division's ROI. b. Compute each division's residual...
Graph the m.g.f. of an exponential r.v. with a given mean. For which zs can we do it?
Find the best predicted tip for a ride that is 3.10 miles. How does the result compare to the actual tip of $4.55? Find the best predicted fare amount for a distance of 3.10 miles. How does the...
Since the SUTA rates changes are made at the end of each year, the available 2022 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate...
I have asked three questions with my textbook chapter in which they come from. it would be greatly appreciated if you could help me answer these three questions. Thanks so much. :) 1. What is the...
From your reading in Stevens & Smith (2010), a basic description of a medical detoxification, dual-diagnosis inpatient hospital, independent rehab programs, partial hospitalization, halfway houses,...
What are the differences in accounting for a forward contract used as a cash flow hedge of (a) a foreign currency denominated asset or liability and (b) a forecasted foreign currency transaction?
What are multinational corporations (MNCs) and what economic roles do they play?
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2...
Prepare the adjusting journal entries and Post the adjusting journal entries to the T-accounts and adjust the trial balance. Dresser paid the interest due on the Bonds Payable on January 1. Dresser...
Venneman Company produces a product that requires 7 standard pounds per unit. The standard price is $11.50 per pound. If 3,900 units required 28,400 pounds, which were purchased at $10.92 per pound,...

Speed Boats Inc. has two divisions, Economy and Elite. The tax rate for the company is 40%.

Question:

Economy Elite Revenues $3,800,000 $2,500,000 Current liabilities 250,000 300,000 Total assets 1,800,000 1,100,000 Before-tax operating income 350,000 160,000 WACC 11.5% 11.5%

Step by Step Answer:

Accounting For Managers Interpreting Accounting Information For Decision Making

Students also viewed these Business questions