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Kwill Pens, Inc. produces the following income statement and balance sheet for the year. The company has a tax rate of 35% and a cost
Kwill Pens, Inc. produces the following income statement and balance sheet for the year. The company has a tax rate of 35% and a cost of capital of 13.50%.
Problem 4-B Economic Value Added Kwill Pens, Inc. produces the following income statement and balance sheet for the year. The company has a tax rate of 35% and a cost of capital of 13.50% Income Statement $ millions) Balance Sheet ($ millions) Net sales Expenses Depreciation EBIT Interest expense Taxable income Taxes (35%) Net income $3,800.00 1,120.00 560.00 $2,120.00o 840.00 $1,280.00 448.00 $ 832.00 Assets Current assets Net fixed assets Total assets $1,900.00 2,850.00 $4,750.00o Liabilities & Owner's Equity Current liabilities Long-term debt Owner's equity Total liabilities and equity $1,520.00o 2,090.00 ,140.00 $4,750.00o a. What is the company's after-tax operating income? (Enter your answer in millions and round to two decimal places.) After-tax operating income million b. What is the company's total capitalization? (Enter your answer in millions and round to two decimal places.) Total capitalization millionStep by Step Solution
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