1. Suppose you have the following information for the Vanilla Bean company for 2021 :

Required Return on Equity of 10.00 % .

Tax Rate of 30 % .

Cost of Debt of 7.00 %

Book Value of Equity of $ 15 billion .

Long - Term Debt of $ 5 billion .

The firm's Risk Adjusted Opportunity Cost of Capital ( RAOCC ) is

A. 14.00 %

B. 13.50 %

C. 8.75 %

D. 8.50 %

. Vanilla Bean company also reports for 2021 :

Operating Profit of $ 4 billion .

Taxes of $ 120 million

Vanilla Bean's NOPAT is ______ , and its ROIC is______.

A. $ 2 billion ; 20 %

B. $ 3.88billion ; 19.40 %

C. $ 1.5 billion ; 24.50 %

D. $ 2 billion ; 8.75 % .

The Vanilla Bean company's Economic Value Added ( EVA ) is

A. $ 5.34 billion

B. $ 3.88 billion

C. $ 2.12 billion

D. $ 4.08 billion .