Question
Glady Global Tourism Transportation and Transhipments have 3 lines of business (a) Retail Tourism (b) Goods Transhipments (c) Local Transport of people and goods. Company
Glady Global Tourism Transportation and Transhipments have 3 lines of business (a) Retail Tourism (b) Goods Transhipments (c) Local Transport of people and goods. Company has a centralized treasury for raising capital and their capital providers expect 3% returns more than their capital cost of 15%.
Company is in a tax bracket of 25%
Rank the Lines of Business in terms of Economic returns:
(a) Tourism : Direct cost : 60% of the sales, Fixed cost - $1.8 Billion for a revenue of $5 billion and asset base of $3 Billion
(b) Transhipment: EBIT Margin of 35% and an Asset productivity of 0.6 times
(c) Transportation: ROI of 24%
Which one is the correct option?
1. Transhipment-Transportation-Tourism
2. Transportation-Transhipment-Tourism
3. Transportation-Tourism-Transhipment
4. Tourism-Transhipment-Transportation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started