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E23-32 (similar to) Question Help Doomusic Company makes doorbells. It has a weighted average cost of capital of 0%, and total assets of $5.000.000. Domusi

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E23-32 (similar to) Question Help Doomusic Company makes doorbells. It has a weighted average cost of capital of 0%, and total assets of $5.000.000. Domusi has current abilities of $900.000. Its operating income for the year was 5700,000 Doomusic do not have to pay any income taxes one of the expenses for accounting purposes was a $80,000 advertising campaign run in early January The entire amount was deducted this year, though the Domus CEO believes the beneficiades of this advertising will last 4 years Read the tourmet Requirement 1: Calendario uning Doomic defenvestimentos assets Begin by coming the formula then enter the amounts and cause the Rifor the year E23-32 (similar to) Question Help Doomusic Company makes doorbells. It has a weighted average cost of capital of 0%, and total assets of $5.000.000. Domusi has current abilities of $900.000. Its operating income for the year was 5700,000 Doomusic do not have to pay any income taxes one of the expenses for accounting purposes was a $80,000 advertising campaign run in early January The entire amount was deducted this year, though the Domus CEO believes the beneficiades of this advertising will last 4 years Read the tourmet Requirement 1: Calendario uning Doomic defenvestimentos assets Begin by coming the formula then enter the amounts and cause the Rifor the year assuming Doormusic defines investment as total assets. er the amounts and i Requirements 1. Calculate residual income, assuming Doormusic defines investment as total assets. 2. Calculate EVA for the year. Adjust both the year-end assets and operating income for advertising assuming that for the purposes of economic value added the advertising is capitalized and amortized on a straight-line basis over 4 years. 3. Discuss the difference between the outcomes of requirements 1 and 2. Which measure would you recommend, and why? Print Done click Check Answer. E23-32 (similar to) Doormusic Company makes doorbells. It has a weighted average cost of capital of 9%, and total assets of $5,900,000. De Doormusic does not have to pay any income taxes. One of the expenses for accounting purposes was a $80,000 advertis Doormusic CEO believes the beneficial effects of this advertising will last 4 years. Read the requirements RI Requirement 1. Calculate residual income, assuming Doormusic defines investment as total assets. Begin by determining the formula, then the amounts and calculate the RI for the year. RI

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