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Can you please help with question 1 and 2? Thank you AllGood Corporation has operating income (EBIT) of $650,000, total assets of $3,500,000, and its
Can you please help with question 1 and 2? Thank you
AllGood Corporation has operating income (EBIT) of $650,000, total assets of $3,500,000, and its capital structure consists of 25 percent debt and 75 percent equity. Total assets were equal to total operating capital. The firm's after-tax cost of capital (WACC) is 9.5 percent and its tax rate is 40 percent. The firm has 65,000 shares of common stock currently outstanding and the current price of a share of stock is $44.00. Question 1 (1 point) What is the ROIC? Based on the ROIC, is Allgood doing a good job? Why? 13.42%, No 13.42%>9.50% 12.21%, No 12.21%>9.50% 18.75%, Yes 18.75%>9.50% 11.14%, Yes 11.14%>9.50% Question 2 (1 point) What is the AllGood's Market Value Added (MVA)? $235,000 $421,000 $910,000 $482,000 Step by Step Solution
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