Question
1.Seltzer Inc.has an Operating Income of $600,000,Total Assets of $4,000,000, and Current Liabilities of $250,000.If the company's Effective Tax Rate is 30% and their Weighted
1.Seltzer Inc.has an Operating Income of $600,000,Total Assets of $4,000,000, and Current Liabilities of $250,000.If the company's Effective Tax Rate is 30% and their Weighted Average Cost of Capital is 13%, what is their Economic Value Added (EVA)?
2.Company X has Total Assets of $4,000,000 and an Operating Income of $600,000.If the company's Required Rate of Return is 16%,what is the company's Residual Income?
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Fundamentals Of Strategy
Authors: Gerry Johnson, Kevan Scholes, Richard Whittington
2nd Edition
0273713108, 9780273713104
