Calculate the economic profit generated by a business with a capital cost of 5% for $680 million of capital invested and a net profit of $40 million
A) $18.5 million
B) $10 million
C) $6 million
D) $35 million
E) $22.5 million
C
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Par value represents the:
A) arbitrary amount that establishes a minimum price for the stock when it is first issued. B) current market price of the stock. C) amount for which any treasury shares have been acquired by the corporation. D) amount for which treasury shares may be reissued.
The focus for a process improvement exercise should be on balancing:
A) flow. B) capacity. C) workload. D) time.
Which of following is FALSE about sales carbon operations planning (SCOP)?
a. It incorporates sustainability into sales and operations planning. b. It deals with the management and reduction of economic and environmental impact of green gas emissions. c. It expands the size and complexity of the current sales and operations planning process. d. It forces the company to broaden the view of processes to change the focus to the triple bottom line (economic, social, and environment) of sustaining a business.
Using the percentage of sales method, forecasted retained earnings balance is equal to
A) the ratio of retained earnings to sales for the current year multiplied by projected sales for next year, minus dividends paid. B) the retained earnings balance for the current year as no changes are made to this financing account when using the percent of sales method. C) prior year retained earnings plus projected net income less projected dividends. D) the ratio of retained earnings to sales for the current year multiplied by projected sales for next year.