Miley reported these data at the end of the year: Pretax operating income 4,000,000 Long term...
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Miley reported these data at the end of the year: Pretax operating income 4,000,000 Long term liabilities Fair value of equity 5,00,000 15,000,000 The long term debt has an interest rate of 8% and its fair value equaled its carrying amount at year- end. The fair value of the equity capital is 12,000,000 greater than its carrying amount. Miley's income tax rate is 25% and its cost of equity capital is 10%. The EVA is? Miley reported these data at the end of the year: Pretax operating income 4,000,000 Long term liabilities Fair value of equity 5,00,000 15,000,000 The long term debt has an interest rate of 8% and its fair value equaled its carrying amount at year- end. The fair value of the equity capital is 12,000,000 greater than its carrying amount. Miley's income tax rate is 25% and its cost of equity capital is 10%. The EVA is?
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To calculate the Economic Value Added EVA we need to first determine the Total ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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