d.Bon Temps' financial statements show the following information:

Average cost of funds10.0 %

EBIT$500,000

Total capital$1,250,000

EPS$2.00

Shares outstanding150,000

Marginal tax rate30.0%

(1)Compute the company's economic value added (EVA)

(2)Interpret the value you computed in part l(1).

e.Suppose that normally Bon Temps' P/E ratio is 20x. Using the information given in part (l), estimate the market price per share for Bon Temps' common stock.