Doral Division of Resorts International Reported Net Operating Profit After

question 125

Multiple Choice

Doral Division of Resorts International reported net operating profit after taxes totaling $120,000 in 2017.The cost of capital is 10.5 percent and the invested capital is $560,000.R&D incurred in 2017 was $100,000.The company's policy is to amortize intangible assets over 4 years.The income tax rate is 30 percent.How much is the company's economic value added for 2017?

• A)$105,825
• B)$825
• C)$70,825
• D)$75,825

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Definitions:

Structuration Theory

This theory, developed by Anthony Giddens, explains how social practices are created and recreated through the agency of individuals within the constraints of social structure.

Agency

The capacity of individuals to act independently and make their own free choices, influenced by the structures within a society.

Discursive Consciousness

The capability to engage in and apply reasoning about actions and social conditions through the use of language and communication.

Actions

The process of doing something in order to achieve a purpose, often associated with human behavior or interventions.