Envision Company has a target return on capital of 12 percent. The following financial information is available for October ($ thousands): Software Division (Value Base) Consulting Division (Value Base) Venture Capital Division (Value Base)
Book Current Book Current Book Current
Sales $150,000 $150,000 $250,000 $250,000 $850,000 $850,000
Income 17,750 17,200 21,900 25,520 62,230 57,420
Assets 70,000 90,000 100,000 110,000 610,000 590,000
Liabilities 10,000 10,000 14,000 14,000 40,000 40,000

Required:
a. Compute the return on investment using both book and current values for each division.
b. Compute the residual income for both book and current values for each division.

mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?

What is private equity investing? who participates in it and why? how is palamon positioned in the industry? how does private equity investing compare with public market investing? what are the similarities and differences between the two? why is palamon interested in teamsystem? does it fit with palamon’s investment strategy? how much is 51% of teamsystem’s common equity worth? use both a discounted cash flow and a multiple-based valuation to justify your recommendation. what complexities do cross-border deals introduce? what are the specific risks of this deal? what should louis elson recommend to his partners? is it a go or not? if it is a go, what nonprice terms are important? if it’s not a go, what counterproposal would you make?

What role do business cycles play in a market economy