Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

JML insudtries has 40 million of equity and debt capital combined. It has sales of 15 million, depreciation of 2 million, cogs of 10 million,

JML insudtries has 40 million of equity and debt capital combined. It has sales of 15 million, depreciation of 2 million, cogs of 10 million, a tax rate of 20% and interest expense of 1 million. The cost of its capital (WACC) is 9%. What is the companys economic value added?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Make Money With Junk Bonds

How To Make Money With Junk Bonds

Authors: Robert Levine

1st Edition

007179381X,0071793828

More Books

Students also viewed these Finance questions

Question

★★★★★

Suppose 20% of the people in a city prefer Pepsi-Cola as their soft drink of choice. If a random sample of six people is chosen, the number of Pepsi drinkers could range from zero to six. Shown here...

Answered: 1 week ago

Question

★★★★★

In order to attract more customers on Mondays (a slow day), Alexs Pizza Shop in Austin decided to reduce the price of their pizza rolls from $3.50 to $2.50. As a result, Monday sales increased from...

Answered: 1 week ago

Question

★★★★★

=+What is the likely outcome if each person assumes that others will pay for any additional amount of the public good?

Answered: 1 week ago

Question

★★★★★

1. Create an initial ERD for the new system that contains at least eight entities. 2. Analyze each relationship to determine if it is 1:1, 1:M, or M:N. 3. Normalize your designs for all tables to...

Answered: 1 week ago

Question

★★★★★

Firm A just paid a dividend of $2.50 per share. This dividend is expected to grow at a rate of 18% over the next three years and then grow at a rate of 3% after that into the foreseeable future. If...

Answered: 1 week ago

Question

★★★★★

Swifty Corporation issued at a premium of $9100 a $200000 bond issue convertible into 4300 shares of common stock (par value $20). At the time of the conversion, the unamortized premium is $3700, the...

Answered: 1 week ago

Question

★★★★★

1. What is the difference between aperture area and absorber area i n a solar collector? 2. How the solar diffuse radiation is being measured? 3. What is the principle of Solar Pond? 4. List down the...

Answered: 1 week ago

Question

★★★★★

What does physics deal with?

Answered: 1 week ago

Question

★★★★★

Enumerate the qualities of a salesman.

Answered: 1 week ago

Question

★★★★★

A room has to be painted. It's dimensions are 20 meters..The cost of painting per square meter is 5$. Then what is the cost of painting the room.

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Previous Question Next Question