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Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that
Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are the following using the table below: Current liabilities Notes payable Equity Personal car Tax rate Net income Research and Development Training expenses for employees Sales Interest on debt Risk free rate Market return Beta 14500 55600 250000 15000 30% 19500 $7200 $6700 56200 4% 9% 18 REQUIRED 1. Calculate interest expense, tax and EBIT 2. Calculate the total capital employedof the company. 3. Calculate weighted average cost of capital. 4. What is the EVA of the company? 5. Calculate Residual Income. 6. What are the major advantages of using EVA to evaluate performance
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