subject
Business, 19.07.2021 16:10 bwelsh880

K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value. This past year, the firm earned an operating income return on investment of 12 percent, compared to an industry norm of 11 percent. It has been estimated that the firm's investors have an opportunity cost on their funds of 15 percent, which is the same as the firm's overall cost of capital. The firm's total assets for the year were exist100 million. Required:
a. Compute the amount of economic value created or destroyed by the firm.
b. How does your finding support or fail to support what you would conclude using ratio analysis to evaluate the firm's performance?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 20:20
On february 3, smart company sold merchandise in the amount of $5,800 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. smart uses the perpetual inventory system and the gross method. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is:
Answers: 3
question
Business, 22.06.2019 17:00
Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to:
Answers: 2
question
Business, 22.06.2019 23:40
Robert is a district manager who oversees several store managers in a national chain of restaurants. robert reports directly to the vice president of stores and marketing, a member of top management. robert is a middle manager.t/f
Answers: 2
question
Business, 23.06.2019 18:00
What are two dangers of online banking?
Answers: 2
You know the right answer?
K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contr...
Questions
question
Mathematics, 05.11.2020 17:40
question
Mathematics, 05.11.2020 17:40
question
History, 05.11.2020 17:40
question
English, 05.11.2020 17:40
question
Mathematics, 05.11.2020 17:40
question
Mathematics, 05.11.2020 17:40
question
English, 05.11.2020 17:40
question
Mathematics, 05.11.2020 17:40
question
Business, 05.11.2020 17:40