Question
Calculate EVA (economic value added) Balance sheet Cash and short-term investments 7000 Current liabilities 20000 Other current assets 10000 Long-term debt 35000 Non-current assets 62000
Calculate EVA (economic value added)
Balance sheet
Cash and short-term investments | 7000 | Current liabilities | 20000 | |
Other current assets | 10000 | Long-term debt | 35000 | |
Non-current assets | 62000 | |||
Total assets | 79000 | Equity | 24000 |
Income statement
Operating income | 7000 | |
Interest payment | 500 | |
Income before taxes | 6500 | |
Taxes | 1300 | |
Net income | 5200 |
The company's WACC is 8%.
Step by Step Solution
3.41 Rating (154 Votes )
There are 3 Steps involved in it
Step: 1
To calculate Economic Value Added EVA well use the formula EVA ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
Students also viewed these Finance questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App